Location-based Services Market by Component, Technology (GNSS, GPS), Application (Navigation, Tracking), Location Type, End-use Industry (Government and Public Sector, Transportation & Logistics, Smart Cities), and Geography - Global Forecast to 2031

Location-based Services Market Size & Forecast

The Location-based Services Market is projected to reach $327.6 billion by 2031, at a CAGR of 15.9% During 2024–2031. The growth of the global location-based services market is driven by the increasing use of spatial data and analytics across industries, the proliferation of location-based services in the retail sector, and the surging use of location-based services in the agriculture sector. However, dynamic government rules and regulations for location-based services restrain the growth of this market.

Furthermore, constant upgrades in mapping and navigation solutions and the growing demand for wearable devices are generating growth opportunities for the stakeholders in this market. However, the high costs of procuring and implementing location-based services are a major challenge impacting the growth of the location-based services market. Additionally, the use of 5G technology for improved real-time analysis and the development of GIS software using Augmented Reality (AR) and Virtual Reality (VR) technologies are prominent trends in this market.

Surging Utilization in the Agriculture Sector Boosting the Demand for Location-based Services

The agriculture sector holds tremendous growth potential for the providers of location-based services due to the proliferation of precision farming technologies, including GPS and GIS-based systems, drones, and autonomous equipment. Additionally, tractor guidance systems equipped with Global Positioning System (GPS), GPS-enabled soil and yield mapping, and variable-rate input apps that provide farmers with real-time insights are also some of the prominent applications of location-based services. With the integration of IoT, 5G, and AI, location-based services enable farmers to increase yields, get real-time data about environmental temperature and water content, and improve decision-making on harvesting times, crop prices, and soil management. Also, the agriculture sector is adopting crop scouting solutions to enable aerial data collection for trial plots to investigate crop conditions and homogeneity and overcome cloud obstruction issues through satellite observations.

The providers of location-based services are focusing on integrating technologies such as VRT with existing solutions to enhance the monitoring and mapping of agricultural parameters. Farmers are creating variable rate (VRT) application maps for fertilizing and other crop production operations. Additionally, the integration of real-time weather and climate data with location-based services allows farmers to make informed decisions based on current conditions. Several providers of location-based services are focused on launching solutions for farmers. For instance, in February 2023, AQUAOSO Technologies, PBC (U.S.) launched Agcor, a suite of software tools for modern ag lenders. The software is purpose-built by and for agricultural lenders to unlock the power of location-based data across the marketing, loan application, appraisal, reporting, and collateral management processes.

The growing implementation of Geographic Information Systems (GIS), big data analytics, IoT sensor technologies, and drone imagery, and increasing government initiatives to promote location-based services for precision agriculture are driving the growth of this market.

Click here to: Get Free Sample Pages of this Report

Key Findings in the Global Location-based Services Market Study:

Platforms/Solutions to be the Fastest-growing Segment During the Forecast Period

Based on component, the global location-based services market is segmented into platforms/solutions and professional services. The platforms/solutions segment is projected to register the highest CAGR during the forecast period. Factors such as the growing need for location intelligence platforms to analyze and visualize geographic and location-based data, market players’ increasing focus on launching location-based solutions, and the increasing adoption of location-based messaging platforms among consumers are expected to support the growth of this segment.

The Global Navigation Satellite System (GNSS) Segment to Register the Highest CAGR During the Forecast Period

Based on technology, the global location-based services market is segmented into Global Navigation Satellite System (GNSS), Global Positioning System (GPS), Wi-Fi, Near-field Communication (NFC), and other technologies. The global navigation satellite system segment is projected to register a higher CAGR during the forecast period. The growing demand for location-based advertising and the increasing need for GNSS in asset management, the diverse applications of GNSS, including precise positioning and real-time location tracking, and the increasing need for GNSS in asset management contribute to the significant market share of this segment.

The Navigation Segment to Register the Highest CAGR During the Forecast Period

Based on application, the global location-based services market is segmented into navigation, geo-marketing & advertising/target marketing, mapping & GIS, tracking, social networking, commercial applications, infotainment, and other applications. The navigation segment is projected to register the highest CAGR during the forecast period. The increasing initiatives by leading LBS players to develop automotive navigation services and the rapid implementation of comprehensive navigation solutions by automakers are expected to support the growth of this segment.

The Indoor Segment to Register the Higher CAGR During the Forecast Period

Based on location type, the global location-based services market is segmented into outdoor and indoor. The indoor segment is projected to register the highest CAGR during the forecast period. The rising need to track people and objects within indoor spaces and the increasing implementation of LBS to facilitate efficient navigation in indoor environments such as shopping malls, airports, and large buildings are expected to support the growth of this segment.

The Retail & E-commerce Segment to Register the Highest CAGR During the Forecast Period

Based on end-use industry, the global location-based services market is segmented into government & public sector, transportation & logistics, smart cities, retail & e-commerce, consumer goods, media & entertainment, travel & tourism, BFSI, IT & telecommunications, healthcare, hospitality, aerospace & defense, energy & utilities, automotive, agriculture, education, and manufacturing. The retail & e-commerce segment is projected to register the highest CAGR during the forecast period. The increasing popularity of location-based survey and feedback collection tools, the rising need for location-based data for targeted marketing campaigns, the increasing need for supply chain management in the retail sector, and the growing usage of retail asset management tools are expected to support the growth of this segment.

Asia-Pacific to be the Fastest-growing Market During the Forecast Period

Based on geography, the global location-based services market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the global location-based services market. Also, this market is expected to register the highest CAGR during the forecast period. The rising deployments of map-based platforms across Chinese organizations, the high penetration of mobile devices, and the strong customer base for consumer solutions are expected to support the growth of this market.

Location-based Services Market: Competitive Analysis 

The key players operating in the global location-based services market are HERE Global B.V. (Netherlands), Google LLC (U.S.) (a subsidiary of Alphabet Inc.), TomTom N.V. (Netherlands), Esri (U.S.), Hexagon AB (Sweden), Trimble Inc. (U.S.), Cisco Systems, Inc. (U.S.), QUALCOMM Incorporated (U.S.), Microsoft Corporation (U.S.), AT&T Inc. (U.S.), Zebra Technologies Corporation (U.S.), International Business Machines Corporation (U.S.), ALE International (France), Precisely (U.S.), Rohde & Schwarz GmbH & Co. KG (Germany), and Nextbillion.AI Pte. Ltd. (Singapore).

Location-based Services Market Report Summary:

Key questions answered in the report: