Location Analytics Market

Location Analytics Market Outlook

The global location analytics market was valued at US$ 15.7 Billion in 2021, and is projected to register a Y-o-Y increase of 14% in 2022 to be valued at US$ 17.9 Billion.

During the 2022-2032 period of assessment, demand is expected to rise at a 14.1% value CAGR, likely to reach US$ 66.5 Billion by the end of the said forecast period.

Overall, the location analytics landscape is poised to yield an absolute dollar opportunity worth US$ 66.5 Billion until 2032. Sales of Location analytics market will continue to flourish, with a documented CAGR of 16.0% from 2015-2021.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 15.7 Billion
Expected Market Value (2022)	US$ 17.9 Billion
Projected Forecast Value (2032)	US$ 66.5 Billion
Global Growth Rate (2022-2032)	14.1% CAGR
Growth Rate of the U.S (2022-2032)	14.0% CAGR
Expected Market Value of China (2032)	US$ 3.8 Billion
Dollar Opportunity in Japan (2022-2032)	US$ 2.4 Billion
Key Location Analytics Service Providers	IBM Corporation Google LLC Oracle Corporation Microsoft Corporation ESRI SAS Precisely SAP Cisco TomTom

Moreover, Outdoor location will continue to remain the primary beneficiaries of location analytics, likely to register a CAGR worth 14.0% from 2022 to 2032. North America will remain at the forefront, generating an opportunity worth US$ 23.1 Billion during the forecast period.

Location Analytics Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

Increasing use of location based application, location data, spatial data and analytical tools and other advanced technologies have prompted Location analytics market to transform services into a whole new level. As per market research and competitive intelligence provider Fact.MR, the market for location analytics witnessed a staggering 16.0% CAGR from 2015 to 2021. As enterprises strive to attain a competitive edge location analytics is a necessity.

Consistent upgradation of location analytical market to provide a seamless user experience is the need of the hour. By incorporating avant-garde breakthroughs, service providers are not only able to reduce operational costs, but also enhance their returns on investment. Furthermore, changing compliance and governance requirements are also widening the scope for location analytics services.

In the future, as more businesses rely on location analytics, they are continuously innovating their approaches, ushering in efficiency, enhancing quality and improve client experience. Whether it is to migrate, transform or build, deploying the right application strategy can work miracles. From 2022 to 2032, the location analytics market is forecast to grow 3.7x.

Prominent Location Analytics Industry Growth Drivers

Increasing use of location analytical tools and reliance on spatial data

Location analytics has gained significant importance over past few years. Increasing inclination of enterprises towards location analytics coupled with emergence of cloud analytics tools are further expected to accelerate the growth of location analytics market during the projected period. Increase in use of spatial data and analytical tools has increased the growth of the market. Also the growing adoption of location analytics for asset management across many industries fuels the growth of the location analytics market.

Analytical tools provide real time analysis of changing business trends and customer needs thus it help in boosting the market growth. The major factor driving the growth of location analytics market is support from government regarding public safety. Moreover, rising usage of smartphones with innovative mobile applications, mobile commerce, trend of digitalization, and technological advancements are boosting to the growth of the location analytics market. For example, in the military and defence sector location analytics help in tracing precise location of troops, movement of enemies to make decision regarding strategy planning.

Incorporation of IoT to yield Major Growth Opportunities

The growing utilization of the Internet of Things (IoT) on accounts rapid digitization around the world represents one of the major factors driving the market. Also the rise in use of laptops, smartphone tablet has boost the growth of the market.

For instance, Google LLC tweaked Google Maps SDKs to take the customer experience to the next level as they give correct visualization in shipping and delivery. Moreover, the use of drones and satellite imagery tools also contribute to the growth of the location analytics market.

Key Challenges Prevalent in the Global Location Analytics Market

Privacy concerns associated with Location Analytics Solutions

Although location analytics has proven to yield major operational benefits, many enterprises are reluctant to implement it due to a variety of reasons. These typically range from high cost associated with deployment of location analytics solution, lack of proper location analytics algorithm, rising concern related to privacy and data security.

Privacy concern are raised with misuse of location data, both organisation and customer can suffer in serious legal consequences. As Data processing, location sharing, use of location-based information, and data storage are all restricted by government rules and regulations. Thus as a result of increasing individual concern about data privacy limiting the growth of the location analytics market.

However, data privacy and security concerns along with lack of awareness regarding location analytics solutions especially in developing regions are expected to hamper the growth of location analytics market during the forecast period 2022-2032.

Lack of uniformity of laws in location analytics services

Technological advancement has brought several changes in location analytics market. This technology outburst has brought revolution in several fields like retail, healthcare and life sciences, government and defense, and BFSI. Service providers are gaining traction due to the demand for location analytics services. For security and promotional purposes. there is high potential of location analytics in these fields.

As different countries have different norms regarding location analytics different market players find it difficult to develop universal solution for their services across the globe. This will likely sustain growth prospects for location analytics in the years to come.

Country-wise Analysis

How do Growth Prospects Appear in the US Market?

According to Fact.MR, demand for location analytics market in the U.S is likely to expand at a 14.0% value CAGR until 2032, forecast to yield an opportunity worth US$ 16.8Billion. Demand is further expected to be valued at US$ 23.1 Billion by the end of the said forecast period. Growth is attributed to extensive digitization of professional workspaces to streamline workflow and enhance productivity.

Location analytics market have lucrative opportunities in sectors like BFSI, IT and telecommunication and healthcare in the country. Consequently, major enterprises are transitioning towards cloud-based business models, prompting them to introduce various business applications. Moreover, they are investing in key location analytics management solutions to ensure easy processing of data, ensure data security and improving client relationships by providing efficient services.

Presence of numerous location analytic service provider in the country is also to propel the growth of the market. Increase in technological advancement, expanding industry requirement of location based solution, rising government support are some of the factor contributing to increase in location analytics market in US. For instance, in March 2021 US government collaborated with google LLC, and also with other technological players to deploy analytical tools.

What is the Growth Outlook for Location analytics market in the China?

China is estimated to account for the second largest in location analytics market share during the forecast period. Increasing digitalization and rising demand for centrally managed systems China witnessing a substantial rise in the adoption of location analytics.

Increasing implementation of spatial analytics software and equipment in the country is expected to stimulate the growth of location analytics market. Many new start-ups providing innovative solutions at affordable rates also rising organisation investments in location analytics is expected to boost the growth of the market.

As of the end of 2021, about 73 percent of the Chinese population had used the internet this high internet penetration rate and expanding smartphone audience are expected to create significant opportunities for location analytics in the country.

Country-wise Forecast CAGRs in the Location Analytics Market

Region wise Analysis	Growth Rate
U.S	14.0%
U.K	13.5%
China	13.8%
Japan	13.2%
South Korea	12.9%

Category-wise Insights

Why is Demand for Location Analytics is Rising Rapidly?

Cloud Segment accounts for highest revenue in the global location analytics market.

The global location analytics market is segmented into cloud and on premises on basis of deployment mode. As cloud-based applications have allowed organizations to leverage the best of geographic data and cloud platforms and ensure efficiency and flexibility in their offerings. Cloud segment is expected to lead in terms of revenue in global location analytics market during the forecast period.

Cloud location market owing to its requirement to flow with shifting technology that can be used for advance development in the market. Thus cloud segment is expected to gain higher traction in the coming years as it scales the security of operations and gives users complete dominion over their data and applications. Fact.MR expects cloud-based deployment to expand at a CAGR of 13.7% from 2022 to 2032.

By Location Type, which Category is likely to enjoy Maximum Growth?

Outdoor Location Analytics to experience Noteworthy Growth in Upcoming Years

Outdoor location segment is anticipated to gain more share in 2032. Outdoor location is expected to grow by 14.0% through the forecasted period. By analysing customer behaviour and location data the outdoor segment allows businesses to identify their target.

To ensure efficiency in their overall operations organizations can deploy smart geo-marketing, and asset management with integration of geographical data into the process. Rising application of location analytics solution in transportation and logistics industry the outdoor segment is expected to gain significant revenue growth over the forecasted period.

Competitive Landscape

The global market for location analytics is characterized by the presence of multiple vendors, aiming to offer extensive services to clients. Additionally, enterprises are seeking out specialized service providers, offering solutions tailor-made to suit their business objectives. In addition, the vendors are likely to leverage upgradation and product differentiation to gain an edge over other competitors in the market. Vendors are adopting new strategies to expand their business. Some of the recent developments in the market are:

• In April 2021, a global analytics application was introduced by Esri Global Inc. The application will help users to access Esris’s ArcGIS online application, geo-data and images.
• In October 2021, Google LLC introduced refinements in Google Maps SDK for Android to provide better user experience. This feature helps drivers in making deliveries conveniently.
• On July 28, 2021 – INRIX, Inc., a leader in mobility analytics, announced INRIX IQ Location Analytics, a powerful new cloud-based LBS application that provides retailers, investors, and other business professionals the insights to open new stores, increase revenue, and maximize return on investment.

Key Segments Covered in the Location Analytics Industry Report

• by Component :

  • Location Analytics Solutions
    • Geocoding & Reverse Geocoding
    • Data Integration & ETL
    • Reporting & Visualization
    • Thematic Mapping & Spatial Analysis
    • Other Solutions
  • Location Analytics Services
    • Managed Services
    • Professional Services

• by Location Type :

  • Indoor Location Analytics
  • Outdoor Location Analytics

• by Deployment Mode :

  • On-Premises Location Analytics Deployment
  • Cloud-based Location Analytics Deployment

• by Organization Size :

  • Location Analytics for Small and Medium-sized Enterprises
  • Location Analytics for Large Enterprises

• by Application :

  • Risk Management
  • Emergency Response Management
  • Customer Experience Management
  • Remote Monitoring
  • Supply Chain Planning and Optimization
  • Sales and Marketing Optimization
  • Location Selection and Optimization
  • Other Applications

• by Industry Vertical :

  • Retail
  • Manufacturing
  • Government and Defense
  • Media & Entertainment
  • Transportation and Logistics
  • Energy and Utility
  • Telecom and IT
  • Banking and Financial Services
  • Insurance
  • Healthcare, Pharma and Life Sciences

• by Region :

  • North America
  • Europe
  • APAC
  • Middle East & Africa
  • Latin America