Location-Based Services Market - By Component, By Technology, By Application and Forecast, 2025 - 2034

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.
 

One significant growth driver of the Location-Based Services (LBS) market is the increasing penetration of smartphones and mobile internet in developing countries. With billions of smartphones in use globally, equipped with GPS/GNSS and advanced location-tracking technologies, consumers now expect location-specific services in applications like navigation, e-commerce, social media, and ride-hailing.
 

The widespread adoption of 4G, 5G, and Wi-Fi networks has further enhanced the accuracy and availability of location services, even in remote or indoor areas. Businesses are leveraging LBS for targeted marketing and personalized customer experiences, boosting engagement and revenues. Additionally, industries like transportation, healthcare, and logistics rely on LBS for real-time tracking and operational efficiency. This rapid integration of LBS into daily life continues to propel the market forward.
 

For instance, according to Statista, India's smartphone penetration rate reached 71% in 2023, and is estimated to reach 96% by 2040. This is anticipated to accelerate the growth of the market in the coming years.
 

Another key growth driver is the rise of location-based advertising (LBA). Businesses increasingly use LBS to deliver personalized and context-aware advertisements based on users' real-time location. This enhances marketing effectiveness, particularly in retail, restaurants, and entertainment sectors. The growing use of analytics and AI in LBA ensures better targeting and customer engagement, driving demand for LBS solutions globally.
 

Location-Based Services Market Trends

One trend in the Local Services Ads market is the increasing emphasis on verification and trust. Google is prioritizing verified business profiles to reduce fraudulent activity, ensuring that only legitimate businesses can run ads. This shift is pushing small businesses to focus more on maintaining accurate, up-to-date information across their Google profiles. As a result, businesses that comply with Google's verification process are likely to gain more visibility and trust from potential customers. This trend is expected to improve the overall quality and reliability of local service ads.
 

For instance, in October 2023, Google announce that it will require businesses to have a verified Google Business Profile to run Local Services ads. This change, aimed at reducing fraud, affects small businesses in Europe, the Middle East, Africa, and select parts of the U.S. and Canada. If a business's profile information doesn't match the ad details, the ad will be paused. Verification involves claiming and confirming the business address, which can take up to seven days. The new policy may impact businesses that are unaware or haven't completed the verification process.
 

One challenge in the Local Services Ads market is the complexity of the verification process for small businesses. Many small business owners may not be aware of the need for verification or may struggle with the time-consuming steps involved, such as confirming business addresses and providing additional documentation. This can lead to disruptions in advertising, especially if businesses fail to complete the process on time. Furthermore, businesses in remote or underserved areas may face additional hurdles in the verification process, limiting their ability to participate in the program. These challenges can result in lost opportunities for businesses to attract local customers.
 

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 market share and is expected to exceed USD 120 billion by 2034. The hardware segment is dominating the market due to the increasing demand for physical devices that enable advanced functionality, such as improved performance and reliability. Hardware components like sensors, processors, and networking equipment are essential for enabling seamless operation across various industries, including automotive, healthcare, and consumer electronics. The growing need for infrastructure development, smart technologies, and automation further drives demand for hardware solutions. Additionally, hardware offers long-term durability and scalability, making it a preferred choice for businesses seeking reliable, high-performance systems. As technologies evolve, hardware continues to be a foundational element in many innovations.
 

Based on the technology, The GPS/GNSS segment held above 47% of the 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 provide precise, real-time location data enables better navigation, fleet management, and tracking, improving efficiency and safety. GPS/GNSS technology is essential for the growing trend of autonomous vehicles and smart infrastructure, where accurate positioning is critical. Additionally, the global demand for location-based services, such as mapping, geofencing, and personal navigation, is fueling its growth. As the technology continues to improve with greater accuracy and reliability, GPS/GNSS remains a key enabler in many industries.
 

In 2024, the China accounted for a market share of above 60% in Asia Pacific and is expected to exceed USD 72 billion by 2034. China dominates the location-based services market due to its large population and widespread smartphone adoption, driving significant demand for LBS applications in everyday life. The country’s rapid urbanization and the development of smart city initiatives have also spurred the growth of LBS, particularly in transportation, logistics, and public services. China’s strong digital infrastructure, including 5G networks, further enhances the capabilities of LBS for real-time tracking and location-based advertising. Additionally, the rise of tech giants like Baidu and Alibaba, who invest heavily in LBS solutions, strengthens market growth. Government support for innovation and digitalization accelerates the adoption of LBS across various industries in China.
 

In Europe, the market is growing rapidly, fueled by widespread adoption across industries like retail, automotive, and healthcare. The increasing demand for real-time navigation, geolocation services, and targeted marketing is driving the growth. The European Union’s investment in satellite systems such as Galileo and the integration of GPS/GNSS technology into mobile devices and vehicles are key enablers. Additionally, Europe’s focus on smart cities and IoT infrastructure is pushing the adoption of LBS for applications like traffic management, public safety, and location-based advertising. The growing trend of data privacy regulations also influences the way LBS is implemented, ensuring consumer protection.
 

In North America, the location-based services market is booming due to the widespread use of smartphones, mobile applications, and the increasing need for personalized services. LBS is particularly prevalent in sectors like retail, logistics, healthcare, and transportation, offering real-time navigation, delivery tracking, and location-based advertising. The region’s advanced technological infrastructure and the development of autonomous vehicles and smart cities are contributing to the growth of LBS. Additionally, the rise of location-based marketing and demand for geo-fencing services in the retail industry are expanding the scope of LBS. 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 dominate the market due to their strong ecosystem integration, providing comprehensive software, hardware, and cloud solutions that power a wide range of industries. Their vast user bases across consumer and enterprise segments ensure they lead in data-driven services, cloud computing, and artificial intelligence. These companies invest heavily in research and development, driving continuous innovation in areas like AI, machine learning, and mobile technologies. They also have global reach, supported by robust digital infrastructures like Google Cloud, Apple’s App Store, and Microsoft Azure. Their dominance is further reinforced by strategic partnerships and acquisitions, ensuring sustained market leadership.

Location-Based Services Market Companies

Major players operating in the location-based services industry are:

• Apple
• Baidu
• Cisco Systems
• Google
• HERE Technologies
• IBM
• Magellan GPS
• Microsoft
• Oracle
• Qualcomm Technologies
   

Location-Based Services Industry News

• In November 2024, Logi5, a new adtech platform, has launched in India, offering hyper-targeted advertising using location intelligence and predictive analytics. Founded by Gulrez Alam, it integrates real-time and historical data to deliver personalized campaigns, focusing on identity-based targeting rather than broad segmentation. Logi5 emphasizes user privacy with a "privacy by design" approach, ensuring compliance with regulations. The company is targeting high-growth sectors like retail, QSR, and banking, with plans to expand across Asia.
   
• In November 2024, Amazon Location Service has enhanced its Routes, Places, and Maps functionalities, offering advanced location capabilities for developers in healthcare, transportation, logistics, and retail. New features include route optimization, toll cost calculations, GPS trace snapping, and geocode search. Developers can also utilize search functions like "Search Nearby" to recommend local businesses and "Autocomplete" for address predictions. Other features include waypoint optimization for multi-stop deliveries and travel restriction support through Isoline. The service also offers standalone SDKs for new mapping projects or migrating existing workloads.
   

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

• Hardware
  • GPS devices
  • RFID tags
  • Sensors & beacons
  • Smartphones/tablets
• Software
  • Location analytics
  • Geocoding & reverse geocoding
  • Data integration & visualization
  • Reporting & dashboards
• Services
  • Consulting
  • Managed services
  • System integration

Market, By Technology

• GPS/GNSS
• Wi-Fi-based positioning
• RFID & Bluetooth
• Cellular network-based positioning
• Others

Market, By Application

• Location-Based Advertising (LBA)
• Navigation & mapping
• Social networking & entertainment
• Proximity marketing
• Asset tracking & management
• Emergency response & disaster management
• Business intelligence & analytics
• Indoor positioning

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa