Location Analytics Market Size, Share & Industry Analysis, By Component (Solution and Services), By Location Type (Indoor and Outdoor), By Deployment (On-Premises and Cloud), By Application (Disaster and Emergency Response Management, Sales and Marketing Optimization, Supply Chain Management, Customer Experience Management, Risk Assessment and Mitigation, and Others), By Vertical (BFSI, Transportation and Logistics, Government and Defense, Tourism and Hospitality, Manufacturing, Healthcare, Retail, IT and Telecommunications, and Others), and Regional Forecast, 2024-2032

The global location analytics market was valued at USD 18.30 billion in 2023 and is projected to grow from USD 21.15 billion in 2024 and reach USD 64.85 billion by 2032, exhibiting a CAGR of 15.0% during the forecast period. The Location Analytics Market in the U.S. is projected to grow significantly, reaching an estimated value of USD 14.36 billion by 2032, driven by Increasing Adoption of Location-based Applications among Several Industries.

Location analytics is a process to generate insights from location by combining business and geographical data. In recent years, these solutions and services have gained excessive demand across various businesses, government, and retail industries, supplementing the market growth. Innovative technologies, such as cloud computing, the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data, play a crucial role in broadening the application area of location analysis.

The market has been significantly driven by the adoption of global positioning system (GPS) practices across smartphones, vehicles, and other portable devices. Key players operating in the market are taking key initiatives to strengthen their position. For instance,

• In November 2021, Noogata launched a library of location metrics. This launch assisted businesses in utilizing the library and creating places with properties related to a certain business topic.

The rise of all customer-centric industries has led to the introduction of Wi-Fi location analytics systems that allow customers to connect via Wi-Fi on-site, allowing retail centers and other similar industries to serve them better. Direct communication channels are open to enable customers to understand their needs and provide products according to their needs.

Using this method to understand customer needs helps maximize retail production and retail services. Currently, various analytical solutions such as web analytics are very popular. Location-based analytics is becoming the need of the hour to design and measure customer experiences. The solutions are anticipated to gain traction in the near future.

Additionally, many retail companies are implementing location analytics into their marketing strategies. For instance, Walgreens uses location analytics to improve customer loyalty by sending alerts that allow users to open the app whenever they enter a certain area. Users can check further promotional offers by viewing their account details. Therefore, the product adoption in the retail industry will facilitate the market expansion.

The demand for spatial analytics solutions has grown significantly in recent years; however, owing to the spread of the COVID-19 pandemic, the market declined marginally in 2020. This is owing to the minimal adoption of such solutions among verticals. Several market players operating in the market witnessed a financial downturn and an adverse impact on revenue growth.

Location Analytics Market Trends

Artificial Intelligence (AI) and Machine Learning (ML) based Analytics Solutions to Propel Market

In recent years, there has been cumulative growth of Artificial Intelligence (AI) and ML technologies. Location data enabled with AI and ML technologies are used to create pattern recognition and position signatures from the data it receives. Moreover, the technologies are used in creating high-definition (HD) maps and practical simulators to visualize the information. Prominent companies are investing strategically in AI and machine learning to achieve competitive advantages. For instance,

• In October 2021, Google LLC advanced its Google Maps SDKs for Android to provide a better user experience, such as assisting drivers in making deliveries and assisting shops in visually confirming an order's shipping address.

Drone and satellite imagery equipment have been used enormously in recent years, thus making it possible to process all data using conventional computational methods. By completing image recognition and object identification tasks, AI and ML technology save a large amount of time and energy. Location analytics service vendors will deliver innovative tools to consumers and deploy them even more effectively as AI and machine learning advance. The market is projected to grow significantly with advancements in AI and ML.

Location Analytics Market Growth Factors

Increasing Adoption of Location-based Applications among Several Industries to Favor Market Growth

In an environment of increasingly developing digitization, businesses are relying on data to provide the best customer services and thereby grow their business revenues. Businesses may use the ability to envision spatial data to further manage their business plans, such as determining regional priorities, appropriate pricing strategies, and peak buying periods. Furthermore, by combining geospatial data with GIS, businesses can tap into a customer's location to offer appropriate product details and guidance to nearby shops based on their needs.

Key players in the market offer differentiated solutions to assist businesses in using spatial data and gaining a competitive advantage. For instance, in August 2021, Oracle Corporation launched Spatial Studio 21.2. The platform allows users to design areas based on polygon map layers. Using selecting tools, users are designing their territories.

The adoption of such solutions enabled by cutting-edge technologies such as AI, ML, and others, is augmenting. These solutions with advanced technologies are adopted across enterprise operations such as asset and event management, visualization and reporting, and logistics management. Industries such as banking, financial, and government are using geospatial data to achieve a comparative edge and improve their revenue and offer tailored solutions and services for their customer experiences. As a result, the strategic benefits of location intelligence among various industries propel market growth.

RESTRAINING FACTORS

Concerns Associated with Geo Privacy and Confidential Data to Limit Market Growth

Consumer privacy concerns are important in the processing of location data since several regulatory restrictions might prohibit access to location information without the user's agreement. Individuals concerned about the protection of their location-based data might decline to enable vital location data to be gathered, as some spatial analytics apps need. Government laws and regulations oversee the processing of data, location sharing, the use of position information, and data storage. The European Union's (EU) General Data Protection Regulation (GDPR) is the EU's first concerted attempt to safeguard individuals' Personally Identifiable Information (PII). Companies that collect data must follow regional legislation and obtain permission from each customer.

Organizations' access to consumer location data is constrained, limiting their usage of geographic information analytics solutions. As a result, individual worries regarding geo-privacy and sensitive data are growing, restricting the global location analytics market growth in the coming years.

Location Analytics Market Segmentation Analysis

By Component Analysis

Solution Segment Captured Largest Share, Owing to Adoption across Large Organizations

Based on component, the market is segmented into solution and services. Among them, the solution segment captured the largest market share in 2023. The solution segment is further divided into geocoding and reverse geocoding, thematic mapping and spatial analysis, reporting and visualization, data integration and ETL, and others.

Analytics solutions endorse social, geographic, physical, and emotional indicators that are helping businesses to increase their profit. Extended practices of the Google Cloud and Google Maps into the advanced location mapping and tracking applications drive sufficient adoption of geocoding APIs. Spatial analysis is expected to showcase significant adoption owing to its enhanced perspective capabilities. Spatial analytics is allowing businesses to solve complex location-related problems and drives new perceptions for better decision-making.

By Location Type Analysis

Outdoor Analytics to Drive Major Revenue as Software Providers Demand Location Analytics Solutions

Based on location type, the market is segmented into indoor and outdoor.

The outdoor segment gained maximum share in 2023. Outdoor analytics solutions enable enterprises to identify prospective customers based on online customer behaviour, shopping experiences, and location data visualization. Business intelligence and analytics software providers are incorporating mapping and geographical data into their offerings. This will aid companies in geo-marketing and advertisement, asset management, and business planning by understanding consumer behaviour.

The indoor segment is expected to grow at the highest CAGR during the forecast period. Indoor analytics solutions enable organizations and government associations to visualize data collected from indoor devices such as smartphones and Wi-Fi networks and help businesses make business decisions. Besides this, the indoor location analytics industry solutions help organizations in real-time mapping, indoor location tracking, and asset tracking.

By Deployment Analysis

Greater Functionality and Lower Costs of Cloud-based Location Analytics Solutions to Boost the Market  

Based on deployment, the market is diversified into cloud and on-premises. The cloud is expected to witness the highest growth rate and to be the dominating due to its ability to use cloud-based location analytics to provide greater flexibility and efficiency.

Cloud deployment has dramatically changed how businesses deliver their functionality with greater efficiency and flexibility in almost every field. Lower costs and less maintenance are some of the major advantages of boosting the cloud deployment of solutions. With the help of cloud-based solutions, organizations can access a large amount of geographic data and leverage cloud platforms to perform analysis and mapping.

By Application Analysis

Rapid Emergency Response and Real Time Decision-Making in Disaster and Emergency Response Management to Play a Vital Role

Based on application, the market is segmented into disaster and emergency response management, sales and marketing optimization, supply chain management, customer experience management, risk assessment and mitigation, and others. The use of location intelligence solutions for disaster and emergency response management is expected to grow at a higher rate during the forecast period. To sustain mission-critical decisions, agencies need real-time, coordinated emergency response and risk management solutions. These tools must aid emergency managers in maintaining situational and organizational awareness, analysing the effects of an event quickly, assessing risk, deploying required resources, and educating, informing, and warning the public. When accidents happen, emergency responders need a location-based approach to enable strategic decision-making that can help save lives.

Location analytics solutions are revolutionizing the way companies establish communication with their potential and existing customers. Companies make their marketing campaigns more competitive by evaluating geo-specific data intelligently and ensuring they reach the right customers. As businesses gain a competitive edge, sales and marketing optimization strategies with location intelligence solutions play a significant role.

By Vertical Analysis

Growing Usage of GPS and Spatial Analytical Tools in Retail to Showcase Strong Adoption of Location Analytics Solutions

By vertical, the market is segmented into BFSI, transportation and logistics, government and defence, tourism and hospitality, manufacturing, healthcare, retail, IT and telecommunications, and others.

The retail segment has captured the largest market share owing to the increasing use of GPS and spatial analytical tools to enhance indoor retail operations. The capability of the GIS platform to analyze the spending habits of consumers from different locations help retailers to build precise sales strategies. Further, efficient geographical data analysis also helps retailers understand the product and service demand in a geographical context. Additionally, various partnerships to bring new technologies into the retail sector have increased the demand for location analytics solutions. For instance,

• In April 2022, Oriient, a software service that provides indoor location services, is working with Google Cloud to create a single offering for store navigation and proximity marketing. Oriient is available in the Google Cloud Marketplace, and is part of an integrated package solution for Google Cloud.

The adoption of location-based solutions in the healthcare industry is booming at a faster rate. Big Data and location analysis, coupled with Internet of Things (IoT) solutions, assist healthcare organizations in tracking patient statistics and vitals such as the patient’s sleep, heart rate, exercise, distance walked, and others. The solutions provide numerous applications to healthcare organizations and hospitals, such as performance management, territory management, healthcare factor analysis, and site planning for healthcare operations.

REGIONAL INSIGHTS 

Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is expected to dominate the global location analytics market share. The increasing demand backs the market growth for position intelligence and geospatial analytics solutions among industry verticals such as government, defence, retail, and others. For instance, in March 2020, The U.S. Government collaborated with Google LLC, Meta Platforms, Inc. (Facebook), and other technology players and health experts to deploy analytics tools. This has assisted organizations in leveraging location data gathered from individuals to combat the virus spread, including tracking people's social distancing behaviour.

Asia Pacific is anticipated to showcase the highest CAGR during the forecast period. A substantial increase in the adoption of location intelligence solutions by governments in the area for public safety purposes has driven the growth. For instance, in June 2020, Quadrant.io, a leading location intelligence firm, launched the Asia Pacific Data Alliance (APDA), which includes over 100 consulting, geospatial, and data analytics firms. The program helped leading companies, governments, and researchers access mobile location data to mitigate risks associated with the virus's spread.

Europe is expected to showcase a considerable CAGR. The European Space Agency's (ESA) projects, including The Copernicus Program, aim to provide users with a user-friendly geographic information system environment. Furthermore, the increasing importance of location data in infrastructure management and planning is expected to drive growth.

Similarly, Middle East and South American countries have shown an interest in actively creating spatial data resources, citing high demand for location analytical tools.

List of Key Companies in Location Analytics Market

Emphasis of Key Players on Developing Advanced Location Analytics Solutions to Strengthen Market Competition

The companies operating in the market, such as Microsoft Corporation, Google LLC (Alphabet Inc.), Zebra Technologies Corporation, Esri, HERE Technologies, IBM Corporation, and others, are launching advanced solutions integrated with emerging technologies and various strategic partnerships.

• February 2023 – HERE Technologies, the prominent technology and location information platform, partnered with Cognizant to deliver real-time location information and analytics to Cognizant's customers in the logistics, retail, manufacturing, and automotive industries. With this partnership, Cognizant is creating intelligent spatial solutions for its clients through the dynamic data visualization and exchange abilities provided by the HERE location platform.

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (U.S.)


• Google LLC (Alphabet Inc.) (U.S.)


• Zebra Technologies Corporation (U.S.)


• Esri (U.S.)


• Hexagon AB (Sweden)


• Here Technologies (Netherlands)


• Precisely (US)


• SAP SE (Germany)


• TomTom (Netherlands)


• SAS Institute Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024 - ANYbotics and Cognite collaborated to provide integrated robotic inspection solutions. The solutions automate real-time data collection to facilitate location, analysis, and reporting and improve digital twin.


• November 2023 - Gravy Analytics, an enterprise location intelligence company, and Unacast, a location analytics and data company, announced a definitive merger agreement to create one of the largest and most comprehensive location analytics platforms in the industry. The merger would expand location intelligence for customers in the retail, telecommunications, real estate, and financial services.


• March 2023 - BetterMile, a company supplying smart spatial software for parcel delivery, announced an extended partnership with HERE Technologies to enhance its service. Drivers around the globe using BetterMile can now access complete location information and geocoding from HERE, customized for fleet delivery on their devices.


• September 2022 - TomTom introduced GO Navigation’s truck plan, which is curated to meet the needs of professional truck drivers. This allows drivers to plan their routes according to maximum speeds, vehicle dimensions, fuel needs, and cargo as well as GO Navigation's premium navigation features and abilities.


• July 2021 - INRIX, Inc., a leader in mobile analytic technology, unveiled a powerful new cloud LBS application called INRIX IQ, which provides retailers, investors, and other business people with information to open new stores, raise revenue, and achieve optimum returns on their investments.

REPORT COVERAGE

The report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies and product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors contributing to the market's growth in recent years.

Report Scope and Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Unit	Value (USD Billion)
Growth Rate	CAGR of 15.0% from 2024 to 2032
Segmentation	By Component Solution Geocoding and Reverse Geocoding Thematic Mapping and Spatial Analysis Reporting and Visualization Data Integration and ETL Others (Demographic Data, Route Optimization) Services Consulting Integration and Implementation Support and Maintenance By Location Type Indoor Outdoor By Deployment On-Premises Cloud By Application Disaster and Emergency Response Management Sales and Marketing Optimization Supply Chain Management Customer Experience Management Risk Assessment and Mitigation Others (Location Optimization, Remote Monitoring and Management) By Vertical BFSI Transportation and Logistics Government and Defense Tourism and Hospitality Manufacturing Healthcare Retail IT and Telecommunications Others (Energy and Utilities, Education) By Region North America (By Component, By Location Type, By Deployment, By Application, By Vertical, and By Country) U.S. (Vertical) Canada (Vertical) Europe (By Component, By Location Type, By Deployment, By Application, By Vertical, and By Country) U.K. (Vertical) Germany (Vertical) France (Vertical) Italy (Vertical) Spain (Vertical) Russia (Vertical) Rest of Europe Asia Pacific (By Component, By Location Type, By Deployment, By Application, By Vertical, and By Country) China (Vertical) Japan (Vertical) India (Vertical) Australia (Vertical) Southeast Asia (Vertical) Rest of Asia Pacific Middle East & Africa (By Component, By Location Type, By Deployment, By Application, By Vertical, and Country) South Africa (Vertical) GCC (Vertical) Rest of Middle East & Africa South America (By Component, By Location Type, By Deployment, By Application, By Vertical, and Country) Brazil (Vertical) Mexico (Vertical) Argentina (Vertical) Rest of South America