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Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 21
Pages: 180
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Location-Based Services Market
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Location-Based Services Market Size
The global location-based services market was valued at USD 51.3 billion in 2024 and is projected to grow at a CAGR of 21.6 % between 2025 and 2034. Higher penetration of mobile phones and mobile internet in developing nations, consumers are now increasingly inclined towards location-based services for navigation, social media, ride-hailing, e-commerce, etc. It is offered by almost all smartphone-enabled GNSS/GPS devices.
The 4G, 5G, and Wi-Fi network revolution are making LBS more accessible even in the secluded indoors and is increasing the accuracy of location services. For boosting revenue and engagement, businesses are taking advantage of automated targeted marketing through LBS. It is also a staple for real time tracking and other operational functions in various sectors including healthcare, transportation, and logistics. The integration of LBS into the rhythms of daily life, however, is where the exponential growth stems from.
NASDAQ observes that mobile phone usage has proliferated worldwide with a recorded 3.5 billion smartphone users in 2021. India’s smartphone penetration rate reached 71% in 2023, and it is estimated to reach 96% by 2040. This development is expected to put the market in case for a fast-track growth.
The increasing use of LBA is another important element which will contribute to growth. Companies are relying on LBS more and more to send advertisements that are personalized and dependent on the user’s current whereabouts. LBA is proving effective primarily in marketing oriented towards retail, restaurants, and the entertainment sector. The growing adoption of analytics and AI into LBA ensures that there will be improvements in targeting and customer engagement, which will further increase the need for LBS solutions in the market.
Location-Based Services Market Trends
Supporting this trend is the issue of verification and trust in Local Services Ads that is being prioritized. Google is focused on business profiles that have undergone verification to increase the number of legitimate businesses that advertise and decrease the level of fraudulent activity. This change is narrowing the advertisement space that innovative small businesses have to market themselves, so they are compelled to pay more attention to the provision of reliable, precise, and current information in their Google profile. Therefore, customers will trust and seek the businesses that passed the verification process with google. Local Service Ads should have the result of less but better ads.
For instance, In October 2023, Google declared its plans to compel companies to obtain a verified Google Business Profile before they can run Local Services ads. This shift, which is intended to combat the possibility of fraud, will affect small business owners in Europe, Mideast, Africa, and some countries in the US and Canada.
The ad will be paused if the business’s profile details do not align with the ad information. Verification entails claiming and confirming the business address, which in some cases may take up to a week. This new policy could influence companies who are unfamiliar with or have not yet completed the verification process.
The verification process in the Local Services Ads space is quite comprehensive so this is one of the problems that the small size business may face in trying to leverage the opportunities offered by the ad. The time and information needed could be a serious constraint for many small business entrepreneurs.
Failure to complete the process may cause a gap in advertising activities. Businesses in isolated locations or those that are disadvantaged may also have additional challenges that will hinder them from passing the verification and this makes it even harder for these types of businesses to get on the program. All these factors could lead to failure for many business enterprises seeking to gain new customers from the locality. ?
Location-Based Services Market Analysis
Based on the component, the market is segmented into hardware, software and services. In 2024, the hardware segment accounted for over 40% of the location-based services market share and is expected to exceed USD 120 billion by 2034. The market is increasingly being driven by the physical devices for advanced functions and which require high reliability and performance and so the Hardware segment is leading the market. Some examples of hardware are sensors, processors, and networking devices, which are necessary for the integration of various industries such as automotive, healthcare, and electronics.
As the world moves towards smart technologies and infrastructure automation, there is greater demand for these types of hardware. Moreover, business growth, durability, and powerful reliable system performance drives companies towards preferring hardware over other options. With time, changes are witnessed in innovation, but hardware continues to prevail in the integration of many such technologies.
Based on the technology, The GPS/GNSS segment held above 47% of the location-based services market share in 2024. GPS/GNSS is dominating the market due to its widespread application in numerous industries, such as automotive, logistics, agriculture, and consumer electronics. The ability to precisely, in real time, track the movement of goods allows a better fleet management and navigation which increases the effectiveness and safety of various industries such as export, agriculture, automobile, and even consumer electronics.
There is a great boost in the construction of autonomous driven cars paired with smart infrastructures which makes GPS/GNSS technology necessary for accurate location tracking. Coupled with the rising demand for location-based technologies like mapping, navigation, and geofencing, hardware technology is bound to increase. GPS/GNSS continues to be revolutionary technology as it is further developed with advanced metrics of reliability and accuracy for numerous industries.
In 2024, the China accounted for a location-based services market share of above 60% in Asia Pacific and is expected to exceed USD 72 billion by 2034. China's large population and the high penetration of smartphones creates a huge market for LBS applications. This, along with China’s rapid urbanization and the ‘smart city’ initiatives, has escalated the growth of LBS China’s emerging economy is marked and enforced by strong digital infrastructure, 5G networks, as well as the ability to enhance the capabilities of LBS for real-time tracking and advertising.
The emergence of Alexab and Baidu and the investment from these companies in LBS solutions further strengthens this market. Government support for innovation the LBS systems over different sectors in China.
In Europe, the LBS market is at a crucial break through stage, especially with the adoption of LBS solutions over retail, automotive, healthcare and many more sectors. The increased need for navigation, geolocation and market targeting strategies is on the rise which furthers the growth. Additionally, Europe’s focus on smart cities and IoT provides motivation to use LBS over the traffic management systems, public safety, and advertising.
The implementation of LBS is affected by the evolving approach towards data privacy regulations for the purposes of consumer protection, with the increased penetration of smartphones and mobile apps, as well as the enhanced demand for services around the continent, the LBS market in North America is flourishing. Sectors such as retail, logistics, healthcare, and transportation utilize LBS to provide real time software assistance for navigation, advertising for products, and tracking delivery.
The growing presence of smart cities and autonomous vehicles in the region, together with its developed technological infrastructure, are setting the pace for the advancement of LBS. Moreover, the escalation of geo-fencing services and retail location-based marketing will broaden the LBS industry. Strong government investments in infrastructure to support IoT and 5G networks are also expected to drive LBS adoption further.
Location-Based Services Market Share
Google LLC, Apple Inc., and Microsoft Corporation collectively held a substantial market share of over 53% in the location-based services industry in 2024. Google LLC, Apple Inc., and Microsoft Corporation lead the market due to their comprehensive integration of ecosystems. This allows them to offer excellent consumer and enterprise grade software, hardware, and cloud solutions for all sectors. With their enormous customer base, these companies dominate data-enabled services, cloud computing and artificial intelligence.
To maintain this versatility, these businesses allocate significant funds to research and develop emerging technologies such as AI, machine learning, and mobile devices. With powerful digital infrastructure like Google Cloud, Apple App Store, and Microsoft Azure, they have a global outreach. Their market leadership finalizes with clever mergers and acquisitions with other businesses.
Location-Based Services Market Companies
Major players operating in the location-based services industry are:
The location-based services (LBS) market is divided between global competitors and local players. Despite this segmentation allowing providers to target varying customers across retail, transport, health, and entertainment industries, international competitors dominate the market. These players have established strategic acquisitions and providing a comprehensive range of developing LBS fortunes that include real time monitoring, geofencing, and IoT integrations. Multi-constellation GNSS support, augmented reality (AR), and LBS solutions focusing on AI-driven analytics are some of the innovations they emphasize, ensuring their dominance within regions with high smartphone usage and personalized service requirements.
The need for precise location data is maintained and so is the need for more regulation on marketing strategies, which is requiring that regional suppliers adapt to new technologies or work with larger international firms. The market is expected to be significantly more consolidated because of increased M&A activity while local firms look to acquire foreign firms to enhance their competitiveness.
Location-Based Services Industry News
The location-based services market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:
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Market, By Component
Market, By Technology
Market, By Application
The above information is provided for the following regions and countries: