May 21, 2024
Location-Based Services Market

Location-Based Services Market Propelled by Growth of Augmented and Virtual Reality Technologies

Location-based services allow individuals and businesses to locate and interact with nearby people, businesses and places through an app or portal on a smart device. Location-based apps use GPS, Wi-Fi and other signals to pinpoint the user’s exact location to provide customized local search results, directions, local reviews and deals. This enables seamless discovery for travelers, consumers seeking local services and businesses aiming to boost their visibility.

The global Location-Based Services Market is estimated to be valued at US$ 38233.27 Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Augmented and virtual reality technologies are being integrated with location-based apps to enhance user experience. For example, Pokemon Go uses geodata to place virtual characters and objects on real world coordinates, allowing users to capture Pokemon in real places through their smartphone cameras. Similarly, apps can place virtual guide information, animations or simulations overlapped on real world locations. As augmented and virtual reality becomes mainstream, more location-based apps and services will merge digital experiences with physical spaces to revolutionize how people interact with and discover places around them. This will be a key driver of growth for the location-based services market over the forecast period.

SWOT Analysis
Strength: Location-based services can provide highly personalized and localized experiences for users based on their precise location. This improves customer satisfaction and loyalty.

Weakness: Privacy and data security concerns persist around location tracking and data collection. Users may hesitate to share their location if they doubt how their data will be used and protected.

Opportunity: As location technologies improve in smartphones and other devices, new opportunities will emerge for hyper-local advertising, navigation assistance, and other location-aware applications. This can drive more revenue for LBS providers.

Threats: Technological developments like augmented reality pose a threat to displace some existing LBS models. Stricter privacy laws and regulations could limit the ability of LBS companies to collect and leverage location data.

Key Takeaways
Global Location-Based Services Market Size is expected to witness high growth over the forecast period of 2023 to 2030 as location technologies become more advanced and ubiquitous. The market size for 2023 is projected to reach US$ 38,233.27 million , indicating significant opportunities.

Regional analysis shows that North America currently dominates the LBS market, driven by widespread adoption of smartphones and favorable policies supporting innovation. However, Asia Pacific is emerging as the fastest growing region due to large populations and growing rates of mobile device penetration in countries like India and China. As the middle class in these markets expands, demand for LBS applications will increase substantially.

Key players operating in the location-based services market include Saskatchewan Research Council (SRC), SC Labs, Steep Hill, Inc., SGS Canada Inc., CW ANALYTICAL, PharmLabs, GreenLeaf Lab, and Eurofins Scientific. These companies are developing new analytical testing techniques and devices to capture an increased share of the high-growth LBS industry. Partnerships between technology firms and telecom operators will also be important for delivering comprehensive LBS platforms.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it