Location based services market to reach $402.4 bn by 2031

The global location-based services industry generated $45.4 billion in 2021, and is anticipated to generate $402.4 billion by 2031, witnessing a CAGR of 24.6% from 2022 to 2031, according to Allied Market Research.

Prime determinants of growth
Increase in adoption of social media & smart phones, easy availability of GPS, emergence of location-based technology, and the increase in number of smartphone users and internet accessibility drive the growth of the global location based services market. However, inflated cost of installation and maintenance and operational challenges are hampering the location-based services market growth. On the contrary, the growing penetration of 3G & 4G networks and continuous increase in the number of internet users are expected to offer remunerative opportunities for expansion of the location-based services market during the forecast period.

The services segment to maintain its leadership status throughout the forecast period
Based on component, the services segment held the highest market share in 2021, accounting for nearly half of the global location-based services market, and is estimated to maintain its leadership status throughout the forecast period, as it provides location-based services typically create and implement mapping and navigation solutions into the intended infrastructure to introduce sophisticated navigational capabilities, which aids the firm in future marketing decisions. However, the software segment is projected to manifest the highest CAGR of 26.9% from 2022 to 2031, as it offers location analytics, risk analytics & geofencing, geospatial data transformation, and geocoding & reverse geocoding.

The Assisted GPS (A-GPS) segment to maintain its leadership status throughout the forecast period
Based on technology, the Assisted GPS (A-GPS) segment held the highest market share in 2021, accounting for nearly one-fifths of the global location-based services market, and is estimated to maintain its leadership status throughout the forecast period, owing to the combination of GPS and Cell ID tools. It links the positioning system of GSM operators with satellite positioning and uses both GPS technology and BTS position to correct any errors regarding exact location. However, the others segment is projected to manifest the highest CAGR of 28.3% from 2022 to 2031, owing to the use of methods such as time of arrival (TOA), angle of arrival (AOA), and time difference of arrival (TDOA).

The business intelligence and analytics segment to maintain its lead position during the forecast period
Based on application, the business intelligence and analytics segment accounted for the largest share in 2021, contributing to nearly one-fifths of the global location-based services market, as it helps in improving decision making, optimizing internal business, and increasing operational efficiency. However, the location-based advertising segment is expected to portray the largest CAGR of 29.3% from 2022 to 2031, and is projected to maintain its lead position during the forecast period. This is owing to a rise in the number of smartphone users along with growing adoption in retail & e-commerce sector.

CT Bureau