Location-based services (LBS) use geo-location technologies to provide information, entertainment or utility services to customers based on their geographical location. These services are used across fields such as healthcare, transport, retail and media & entertainment among others. LBS uses the latitude and longitude obtained from satellites to pinpoint the exact location of the user. It can identify the location of a person/asset/vehicle through a variety of methods like using GPS, Wi-Fi or cell tower triangulation.

Location data is increasingly used by companies to gain insights into customer mobility patterns and behaviors. This helps businesses deliver enhanced and personalized customer experiences. LBS also enables location-based advertising which allows promoting relevant offers and services to customers within a specified local area. The growing demand for digital & location-based advertising is one of the major factors driving the growth of the global LBS market.

The Global Location-Based Services Market Size is estimated to be valued at US$ 44044.73 Billion in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.

Key Takeaways

- Key players operating in the location-based services market are Saskatchewan Research Council (SRC); SC Labs; Steep Hill, Inc.; SGS Canada Inc.; CW ANALYTICAL; PharmLabs; GreenLeaf Lab; Eurofins Scientific

- Rapid urbanization and growing use of smartphones are propelling the demand for LBS from industries such as retail, transport, and media & entertainment for applications including fleet management, field sales, and location-based advertising.

- Technological advancements in geo-location technologies such as GPS, Wi-Fi, Bluetooth, RFID are enhancing the accuracy and effectiveness of LBS. Integration of LBS with AI and analytics is further augmenting their utility.

Market Trends

- Indoor location-based services: With the advent of technologies like iBeacon, Wi-Fi triangulation and UWB, LBS providers are shifting focus to offer indoor navigation and mapping services to help users locate products or navigate within buildings like malls and airports.

- Augmented reality powered location services: Leading technology companies are working on AR applications integrated with location data to create interactive augmented experiences. For example, visual marker based AR experiences that provide location-specific information.

Market Opportunities

- Location-based marketing: Growing mobile advertising spending on location-based campaigns provides major opportunities for LBS vendors to partner with brands and offer customized & localized promotional offers.

- Enterprise location services: Demand from enterprises across sectors for fleet management, field force optimization, asset tracking using IoT and geo-fencing based location solutions is opening new revenue streams.

Impact of COVID-19 on Location-Based Services Market Growth

The COVID-19 pandemic had a profound impact on the growth of the location-based services market. During the initial lockdown phases in early 2020, businesses were forced to shut down operations as people were confined to their homes. This led to a steep decline in the demand for location-based advertising and marketing services. With mobility restrictions enforced to curb the virus spread, footfalls to physical retail stores dipped drastically and overwhelmed the market. However, as contactless delivery gained traction, location-based services played a pivotal role in enabling essential services. Food delivery and on-demand services pivoted to location-based technologies for order fulfillment.

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