The global location intelligence market size is expected to reach USD 32.8 billion by 2027, expanding at a CAGR of 15.2 % according to a study conducted by Grand View Research, Inc. Growing penetration of smart devices coupled with the rising demand for data-rich location solutions to increase customer engagement and drive operational efficiency is expected to bolster the growth. Increasing penetration of network infrastructure and smart devices paired with rising digitalization has enabled organizations to collect user information, which in turn is anticipated to further spur the market growth.
Location intelligence is a subcategory of the IoT concept that enables businesses to identify consumer trends, customer behaviour, and a variety of information regarding niche markets for the organizations to make better decisions, deliver better products and services, and to mitigate the uncertainties in the market. Organizations are incorporating real-time location monitoring capabilities in various devices, especially smartphones, for monitoring and recording the geographic position of consumers to be able to analyze trends, improve customer experience, and optimize business operations. Owing to the benefits offered, organizations are more inclined toward implementation of location intelligence services thus spurring the market growth.
Additionally, the booming smartphone and smart devices industry in Asia Pacific (APAC) region is expected to drive the growth of the location intelligence market. The steady rise in investments in IoT technologies, increasing number of smartphone users, and rising spending on connected devices in APAC countries are the factors predicted to fuel the market expansion over the forecast period. However, lack of network infrastructure, data privacy concerns, lack of awareness, and other operational challenges and risks can hinder the growth.
Further key findings from the study suggest that:
- North America accounted for the largest market share in 2019, owing to the highest adoption of IoT and the presence of key players such as Google, Apple, Qualcomm, HERE, Bosch, and GE
- The European Commission is heavily investing in IoT infrastructure and location intelligence technologies thereby aiming to accelerate the regional growth
- Asia Pacific is expected to experience the fastest growth over the forecast period, owing to the rising number of smartphone users, enhancement of networking technologies, increasing number of service providers, and rise of social media
- The transportation and logistics vertical segment accounted for over 19% market share in 2019. Rising adoption of innovative location intelligence tools, owing to rapid technological advancements in network communication, location determination techniques, and sensor technologies is expected to influence the growth
- 2019, Sales and marketing optimization and customer management applications account for market shares of over 20% and 17% respectively. These applications enable organizations to assess spending patterns, consumer behaviour, and forecast sales enabling them to optimize profitability