The global indoor location-based services (LBS) market was accounted for USD 1.83 billion in 2018. It is anticipated to witness 43.3% CAGR during the forecasted years, 2019 to 2025. The rising demand for connected devices like tablets and mobile phones is projected to boost the market demand in the upcoming years. Also, the surging need for digital promotional activities is expected to drive the market growth during the forecasted period, 2019 to 2025.
The construction of several parks, malls, hospitals, and educational institutions across the world has created the need for LBS services owing to the surging need for tracking and navigating purposes. Also, the demand for home and local area networks viz. WLAN and Wi-Fi are anticipated to generate the demand for LBS in the upcoming years.
Several advancements in infrastructural activities owing to the construction of skyscrapers, commercial complexes, and shopping malls are anticipated to lead the demand for LBS. Many of the business organizations and educational institutions have started adopting the usage of VPNs (virtual private networks) for their data protection. These VPNs use the LBS for navigation purposes, thereby driving its demand across the globe.
These services are also used for providing security and assistance to customers. The usage of monitoring appliances by the statutory governing bodies for tracking public activities has also led to a rise in demand for such services. Various industrial players have started using business intelligence and analytics technologies for enhancement of location accuracy.
The product segment of Location-based Advertising services held the largest share across the global market in 2018. This growth can be attributed to the rising usage of such services prevalent among the manufacturers for the promotion of products across the globe. Also, promotional information like discounts and coupons being offered through such services is anticipated to further contribute to the demand for LBS in the upcoming years.
The proximity beacons segment is anticipated to register the highest growth with 48% CAGR during the forecasted years, 2019 to 2025. This growth can be attributed to their usage for promotion which is location-based and for advertising at the hyper-local level. Also, ease of installation coupled with low-cost prices is anticipated to drive the market demand for such services in the upcoming years. Moreover, rapid advances in terms of technology like connectivity of the proximity beacons with WiFi and Bluetooth are expected to further drive the market growth in the upcoming years.
The segment of WiFi/ WLAN, BT/BLE, Beacons, & A-GPS held the largest share across the global market. This growth can be associated to the rising installations of WiFi networks across the globe for the purpose of Data Security. Also, the increasing availability of cost effective beacons and emergence of band frequencies that are ultra wide in nature is enhancing the key players for usage of such services for implementing several marketing strategies.
Also, the surging usage of technologies like WiFi/ WLAN across the telecommunication industry coupled with the exponentially growing usage of the internet and smartphones among the millennial population is anticipated to drive the growth of indoor location-based services market in the upcoming years. Moreover, the preferential usage of such technologies for data transfers and wireless transactions is expected to further create demand for such services.
The application segment of tracking held the largest share across the global market and is anticipated to grow significantly with 40.8% CAGR during the forecasted years. Also, tracking and monitoring of the assets across the defense sector are considered as the major applications of location-based services.
The application segment of proximity is anticipated to register the highest CAGR from 2019 to 2025. This growth can be attributed to its usage among the companies for providing information about their products to the customers based on location. Thus, the geo-targeting application of such service is expected to boost market growth in the upcoming years.
The retail end-use segment is projected to grow with the highest CAGR of 47.1% from 2019 to 2025. This growth can be attributed to the usage of LBS for customer retention and marketing purposes. Such services are using mobile applications to cater to the surging desires of customers across the globe. For instance, information like reviews and ratings required by the customers about the malls, restaurants, and shopping complexes located nearby can be viewed on these apps. These facilities help in the enhancement of shopping experience among the customers.
These services also allow information access to retailers about the interest of customers across the stores like purchase history and wish list items. Thus, it acts as a boon to the retailers in planning the marketing strategies to boost their sales. These features are further anticipated to drive the market growth in the upcoming years.
In 2018, the North American region held the largest share across the global market and generated revenue of USD 749.0 Million. This region has the majority of the key players associated with the LBS market and thus is expected to show significant growth in the upcoming years. These players are constantly engaged in innovation to expand their service-based product portfolio.
The Asia Pacific region is anticipated to grow at the fastest rate in the upcoming years. This growth can be associated with the rising penetration of several retail companies across this region. Moreover, surging investments being made in infrastructural activities like townships, shopping malls, and commercial offices across developing countries like China and India is expected to drive the market growth in the upcoming years.
The COVID-19 outbreak has boosted the market growth for indoor location-based services across the globe. The need for monitoring the movements of isolated and high-risk patients is contributing to the rising demand for such services. Also, the need for permitting access to the healthcare workers in the restricted areas in the hospitals is driving the market growth. Further, increasing cases of data and security breaches due to factors like unemployment and economic instability are triggering the need for enhancing security and assistance. Moreover, technological advances in the field of business intelligence and analytics are expected to augment the market growth for indoor LBS services over the post-pandemic period.
The key players in the market are GloPos Technologies; Apple Inc.; Google Inc.; IndoorAtlas Ltd; Microsoft Corporation; Micello, Inc.; Navizon Inc.; Shopkick, Inc.; and Qualcomm Inc. These players are heavily investing in R&Ds to carry out product development and innovation.
These players have started opening several stores across the globe to widen the product reach and to penetrate deeper in the emerging markets. For example, Apple Inc. had setup stores across cities like Cologne, Nanjing, and Miami in Mach 2017. Also, with the increasing their product sales, these players are aiming to boost the usage of the LBS.
They are also adopting several marketing strategies like the collaboration with other companies for offering other services. For example, Cisco Systems Inc. has partnered with the Rockwell Automation for introducing its product named access point with the LBS.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, China, India, Japan, Brazil, Mexico, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (U.A.E.)
Revenue forecast, company share, competitive landscape, and growth factors and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub segments. For the purpose of this study, Million Insights has segmented the global indoor LBS market report based on products, technology, applications, end use, and region:
• Product Scope (Revenue, USD Million, 2014 - 2025)
• Analytics & Insights
• Automotive Services
• Campaign Management
• Consumer Services
• Enterprise Services
• Location and Alerts
• Location-based Advertising Services
• Precision Geo-targeting
• Proximity Beacons
• Secure Transactions and Redemptions
• Technology Scope(Revenue, USD Million, 2014 - 2025)
• Context Aware Technology
• OTDOA and E-OTDOA
• RFID and NFC
• Satellite, Microwave and Infrared Sensing
• Wi-Fi/WLAN, UWB, BT/BLE, Beacons, and A-GPS
• Application Scope (Revenue, USD Million, 2014 - 2025)
• End-use Scope (Revenue, USD Million, 2014 - 2025)
• Aerospace and Defense
• IT and Telecommunication
• Energy and Power
• Transportation & Logistics
• Regional Scope (Revenue, USD Million, 2014 - 2025)
• North America
• Asia Pacific
• Latin America
• Saudi Arabia
• United Arab Emirates (U.A.E.)
Research Support Specialist, USA