Location intelligence technology has been witnessing significant traction lately. The higher adoption of position solutions across various verticals, including government, retail, and healthcare has ignited its market expansion. Coupled with progressive technologies such as IoT, AI, big data, and cloud computing, the location market is now able to achieve new limits.
In 2021, the location analytics market was estimated at USD 13.66 billion. Experts have predicted the market share to scale from USD 15.76 billion in 2022 to a whopping USD 43.97 billion in 2029. The market will witness a CAGR of nearly 16% during the said period. Although the market saw a setback during the pandemic (a decline of 15.1% in 2020), location intelligence will have consistent adoptions rates in the upcoming years.
The Effect of the Pandemic on the Location Technology
Like many other industries, the location intelligence market too underwent some drastic changes amid the pandemic. In early 2020, the market declined marginally as the technology adoption rates dwindled across many verticals. But the technology played a pivotal role in facilitating a lot of emergency services during the peak of the pandemic. For instance, location technology was used substantially to optimize healthcare operations and resources, thus resolving the over-crowding and resource scarcity in many healthcare facilities.
One notable application of the location technology was the ‘Aarogya Setu’ app launched by the Indian Ministry of Healthcare, employing a blend of Bluetooth and location intelligence to accurately track Covid-19 positive people in the near vicinities, along with offering vital healthcare services. The use of advanced maps and Geographic Information System (GIS) solutions by integrating the location analytics tech has prompted safety compliance across many organizations as they return back to the new normal.
Popular Trends in the Location Market
The advancement in Artificial Intelligence (AI) and Machine Learning (ML) is expected to bring more traction in the location analytics sector. Location intelligence coupled with AI and ML technologies facilitates smart monitoring through position signatures and pattern recognition and enables visualization of information through simulators. The progression of these technologies helps in redefining many business practices and enhancing customer experiences. For instance, Google LLC tweaked Google Maps SDKs to take the customer experience to the next level, bringing accurate visualization in shipping and delivery practices. The popularity of drones and satellite imagery tools also contributes to the steady progression of the location sector.
The Segmentation of the Location Intelligence Sector
#Based on components
In relation to its components, the location market is divided into solutions and services. The solution can be further differentiated into geocoding, reporting, spatial analysis, and more. Geocoding APIs saw more traction in recent years as Google Maps and Google Cloud have progressively tapped into innovative location tracking and mapping applications. The use of spatial analysis is helping businesses to tackle location-based challenges and implement data-driven decision-making in their operations.
The production of new and innovative custom applications and the refinement of existing products have gathered sufficient traction for implementation and integration services. Thus, the service segment of the location sector is all set to witness more progression in the coming years.
#Based on location types
The global location market is divided into indoor and outdoor segments based on the location types. The outdoor segment allows businesses to identify their target audience by analyzing customer behavior and location data. By integrating geographical data into the process, now organizations can deploy smart geo-marketing, and asset management, and ensure efficiency in their overall operations. In addition to location tracking and asset monitoring, the indoor analytics solution facilitates data-driven decision-making across organizations by helping them visualize data collected through smartphones and Wi-Fi networks.
#Based on verticals
Based on the vertical, the location analytics vector is classified into transportation and logistics, BFSI (Banking, Financial Services, and Insurance), tourism, manufacturing, healthcare, retail, and more. The retail sector has witnessed significant growth in the global location market in recent years owing to the increased application of GPS and spatial analytic tools for optimized retail operations. The sector will see a CAGR growth of 15% in the upcoming years. The transportation and logistics sector reported a market share of around 19% in 2019 and will see a steady increase in 2022. The integration of location solutions, together with IoT tools has helped the healthcare sector to significantly enhance its service offerings.
#Based on geography
The market segmentation on the basis of geography is focused on five major regions- North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America.
North America holds the most market share for location solutions, owing to the higher demand for positioning solutions across leading verticals including its government, retail, and defense. According to an online study, the total number of mobile internet users in North America was 282 million in 2018 and is expected to cross over 362 million by 2027. This growth will bring more expansion opportunities for the market as time progresses. In March 2020, the US government joined hands with Google LLC, Meta platforms, and other technical and health experts to employ location data to monitor the virus spread during the peak of the pandemic.
#Based on deployment
When it comes to deployment, there are two major categories, namely on-premises and cloud. The on-premises deployment is expected to see higher traction in the coming years as it scales the security of operations and gives users complete dominion over their data and applications. The cloud-based applications have allowed organizations to leverage the best of geographic data and cloud platforms and ensure efficiency and flexibility in their offerings.
#Based on application
On the basis of application, the location sector can be categorized into disaster and emergency response administration, risk assessment and management, supply chain management, customer experience management, sales and marketing expansion, and more.
Of these, the use of location intelligence solutions for disaster and emergency response management will surely help the authorities to keep the casualties to a minimum during emergencies. These solutions will aid the respective team to analyze the situation and swiftly deploy resources and keep the public safe and sound. Sales and marketing practices using position analytics tools will allow organizations to leverage geo-specific information and enhance their connection with customers.
The application of location intelligence solutions across various industries will guarantee innovation and higher revenue. From enhancing emergency response operations to improved marketing decisions and enhanced customer experiences, the technology can yield the right results when used strategically.
