Location Based Services (LBS) Market Insights, 2031
The global location based services market size was valued at USD 45.4 billion in 2021, and is projected to reach USD 402.4 billion by 2031, growing at an annual growth rate CAGR of 24.6% from 2022 to 2031.
Increase in adoption of social media & smart phones, easy availability of GPS, and emergence of location-based technology is boosting the growth of the global market. In addition, the increase in number of smartphone users and internet accessibility positively impact the growth of the market. Furthermore, the increase in the adoption of IoT devices enabling real-time tracking and monitoring, further expands the scope of location based services applications in sectors like transportation, logistics, and healthcare, accelerating the growth of the location based services market.
However, the significant challenge faced by the location based services industry is the concern regarding the privacy of user location data impeding the market growth. In addition, the high cost of installation and maintenance and operational challenges is hampering the market growth.
On the contrary, the location based services market research indicates several opportunities for new players in the market. Rise in penetration of 4G & 5G networks and continuous increase in the number of internet users are expected to offer remunerative opportunities for expansion of the LBS market growth forecast period. With its ultra-low latency, 5G facilitates real-time, high-precision location tracking. This capability supports new applications like autonomous vehicles, real-time public transportation tracking, and more responsive on-demand services. In addition, the technological advancements such as the integration of AI and ML is advancing location based services by analyzing large volumes of location data, providing more personalized, predictive, and efficient services. This includes improvements in predictive navigation, personalized offers, and route optimization, which are becoming increasingly accurate as these technologies evolve.
Furthermore, the emergence of AR and VR enables immersive, interactive location-based experiences, enhancing navigation, gaming, and virtual tourism applications, as users are able see directions, landmarks, and points of interest in real-time. For instance, AR navigation in indoor spaces like malls, airports, or museums enhances the user experience by overlaying digital information onto real-world views, offering significant location based services market opportunity. In addition, the surge in e-commerce industry has led to the increase in the demand for on-demand services like food delivery, ride-sharing, and logistics, offering remunerative opportunities for LBS providers. These services depend on real-time location tracking to enhance delivery times, improve user experiences, and optimize routes.
Market Trends Insights:
One of the prominent trends is the adoption of location based services in healthcare sector for patient monitoring, emergency services, and hospital asset tracking. Real-time location systems (RTLS) are being used to track medical equipment, improve workflows, and ensure patient safety. In addition, LBS solutions help emergency responders to navigate quickly to accident sites, improving response times and outcomes. Furthermore, with the rise in urbanization, local governments and municipalities are implementing Location-Based Services (LBS) to enhance infrastructure, traffic control, public safety, and the distribution of resources. This includes smart parking solutions, tracking for public transportation, and the incorporation of real-time data for more effective management of cities.
For instance, in September 11, 2024, Quuppa partnered with ZulaFly aiming at redefining location-based services. They planned to leverage their technologies to improve patient outcomes and streamline healthcare facilities. Quuppa, a leader in real-time location systems, and ZulaFly, an innovator in healthcare asset management, aimed to address the demand for precise, real-time data in critical environments. Quuppa, a spin-off from Nokia Research Centre, commercialized its Intelligent Locating System into a platform for location-based services with over 200 global partners.
Another notable trend is the surge in use of voice-enabled LBS applications which are more prevalent, especially with the rise of voice assistants like Amazon Alexa, Google Assistant, and Apple's Siri. This allows users to access location-based services hands-free, improving the convenience of navigation, restaurant reservations, and personalized recommendation. In addition, there is growing trend toward geofencing and proximity marketing, allowing businesses to create virtual boundaries around specific locations. When customers enter these areas, they receive targeted notifications and promotions. This method is popular in retail, hospitality, and tourism, enhancing customer engagement and sales through personalized, real-time location data.
Moreover, the widespread adoption of real-time location tracking in supply chain and logistics operations is another significant trend. Businesses can monitor assets, vehicles, and products in real-time, increasing operational efficiency, lowering expenses, and improving customer satisfaction through enhanced delivery management and visibility. In addition, the upsurge in the use of location based services in travel and tourism industry provides location-specific recommendations, navigation tools, and personalized itineraries. These services enhance the traveler experience with real-time suggestions for activities, accommodations, and dining options.
For instance, On June 4, 2024, P3 Digital Services partnered with Mappo to enhance the SPARQ OS IVI experience. The Mappo app, integrated into SPARQ OS, used AI and location-based technologies to offer culture-oriented travel recommendations. Mappo's NLP technology scanned texts and generated snippets from various sources related to the user's location. This integration allowed SPARQ users to use voice control to explore new places or learn more about familiar ones, making every car ride more interesting and enjoyable.
Technology Insights:
Location-based services (LBS) use real-time geodata from a smartphone to provide information, entertainment, or security. Location-based services can use a smartphone’s GPS technology to track a person’s location if the user has allowed access. Moreover, Location-based technology is commonly used with mobile devices, but it can be applied to any device able to provide a location, including desktop PCs. Furthermore, several mechanisms inside a typical mobile device can provide location information. The most common technologies are GPS, RFID, Wi-Fi, and cellular technology. The location based services market is segmented into Component, Technology, Application and Industry Vertical.
Segment Review
The location based services market is segmented on the basis of component, technology, application, industry vertical, and region. By component, it is categorized into hardware, software, and services. By technology, it is divided into GPS, Assisted GPS (A-GPS), Enhanced GPS (E-GPS), enhanced observed time difference, observed time difference, cell ID, Wi-Fi, and others. By application, the LBS market is classified into location-based advertising, business intelligence & analytics, fleet management, mapping and navigation, local search & information, social networking & entertainment, proximity marketing, asset tracking, and others. By industry vertical, it is segmented into transportation & logistics, manufacturing, government & public utilities, retail, healthcare & life sciences, media & entertainment, IT & telecom, BFSI, hospitality, and others. Region-wise, the market is performed across North America, Europe, Asia-Pacific, and LAMEA.
In terms of type of application, the business intelligence and analytics segment hold the highest location based services market share, as it helps in improving decision making, optimizing internal business, and increasing operational efficiency. However, the location-based advertising segment is expected to grow at the highest rate during the forecast period, as it helps to increase organizational efficiency, reduce cost, and enhance customer engagement.
Regional Insights:
Region-wise, the location based services market size was dominated by North America in 2021. The region is expected to retain its position during the forecast period, owing to the increasing penetration of smartphones and developments in communication technology in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in infrastructure development in commercial offices, localities, and shopping malls in the region.
Competitive Analysis:
The key players that operate in the location-based services industry are ALE International, Apple, Inc., AT&T Inc., Airtel India., Cisco Systems, Inc., Google Inc., HERE, IBM Corporation, Microsoft Corporation, Oracle Corporation, and Qualcomm Technologies Inc. These players have adopted various strategies to increase their location based services market penetration and strengthen their position in the location-based services industry.
Recent Collaborations/Product launched in Market:
- On January 6, 2025, Qualcomm Technologies launched its Qualcomm Aware™ Platform, a cloud-based service for adding observability, monitoring, and location capabilities to connected devices across various industries. Integrated with Qualcomm chipsets and third-party hardware, it provided geolocation, indoor positioning, firmware updates, and device management. This platform enabled manufacturers to gain insights, troubleshoot devices, and extend device longevity, while retailers and distributors could monitor inventory and delivery efficiency.
- On February 26, 2025, Apple partnered with Tech Mahindra to enhance Apple Maps, focusing on improving navigation, local search accuracy, and real-time updates. Tech Mahindra's expertise in digital transformation and data analytics helped refine geospatial data, POI accuracy, and 3D mapping. This collaboration aimed to provide smoother navigation, better route optimization, and enriched location details, supporting AR integrations and real-time traffic insights.
- On July 16, 2024, TomTom and Microsoft renewed their partnership until 2030 to power location-based services across Microsoft's solutions. TomTom's maps and traffic data have supported Azure Maps since 2016. The collaboration will also focus on developing an in-vehicle digital cockpit and infotainment solution using Microsoft AI technology. This partnership aims to create innovative, AI-based products for the automotive, logistics, and mobility sectors.
- On May 5, 2024, Krutrim, launched its Krutrim Cloud, offering access to large language models, AI compute infrastructure, and location services APIs. They launched an Android app for their AI chatbot, with an iOS app coming soon. Krutrim Cloud provided GPU resources, inferencing APIs, and Model-as-a-Service for AI projects. It also offered location-based services APIs and SDKs for mapping and navigation. The AI assistant app supported over 10 Indian languages, with plans to expand to all 22 scheduled languages.
Top Impacting Factors
Increasing adoption of social media, smart phones, and easy availability of GPS
Increase in adoption of smartphones and other wireless devices is one of the crucial factors that is driving location based services market growth. In addition, the rise in demand for location-based check-in applications, advancements in analytics capabilities in communication technology and the ease of availability of low-cost GPS mounted devices is expected to constitute an increase in the LBS industry size. Furthermore, to this rising penetration of social media, mobile-based networking, and increasing penetration of internet-of-things (IoT) are some of the key factors driving the growth of the location based services market.
Moreover, the advancement in the field of communications and ongoing developments in the area of 4G and 5G technologies in economically developing regions. For instance, in February 2022 Druid Software partnered with Polte to enable global location for enterprise 4G, 5G private networks. This collaboration is to address the challenges of security, accuracy, and seamless cellular continuity between private and macro networks globally for Massive IoT, Critical IoT and Broadband IoT positioning use cases. Thus, all these factors collectively are expected to fuel the demand for LBS market size in the near future.
Emergence of location-based technology
Ongoing demand for location-based application in e-commerce, food delivery, tourism, and social networking applications are expected to create numerous growth opportunities for the location based services market. which in turn is driving the growth of the market. In addition, LBS enable retailers to analyze consumer preferences and can give immediate access to product or services information.
For instance, retailers may plan their advertising strategies for their nearest store or area-based offers based on customer location. This will help retailers increase sales and provide personalized products and services to their customer. Moreover, the automotive sector is gaining high functionality when it comes to location-based services (LBS). It allows car and truck drivers to find the best possible route, and therefore reduce idle time and increase work efficiency. Automotive manufactures ensure to provide value added services to their customers such as asset tracking, emergency services, vehicle telematics, traffic services, fleet tracking and navigation.
Digital Capabilities:
location-based service (LBS) is a software services which use geographic data and information to provide services or information to users. In addition, LBS can be used in a variety of contexts, such as health, indoor object search, entertainment, work, personal life, etc. Commonly used examples of location-based services include navigation software, social networking services, location-based advertising, and tracking systems. LBS can also include mobile commerce when taking the form of coupons or advertising directed at customers based on their current location. LBS also includes personalized weather services and even location-based games. Location-based services (LBS) are digital services that are tied to a user's physical location.
These services can range from providing local information, such as directions or restaurant recommendations, to providing more complex services such as tracking and monitoring of a user. Location-based services use a variety of technologies to pinpoint a user's location, such as GPS, Wi-Fi networks, cellular towers, QR codes and RFID technology. The digital capabilities of location-based services are constantly evolving, with more and more services being developed to make use of a user's location data. These services can provide a range of capabilities, such as personalizing content, providing real-time navigation, tracking and monitoring, and even providing detailed analytics about a user's location. LBS industry can also be used to provide targeted advertisements and promotions to users, as well as providing insights into a user's behavior and interests.
Government Regulations:
Increase in demand for location based service market has strengthen significantly, the adherence to deployment & development of geospatial analytics and government regulations & laws are inevitable. Significant barriers are set to achieve the goals in the national and societal policies objectives; some relate to cost. Sometimes the location-based service is varied by geographical location, religion, and political condition and commercial factors. However, a number of issues are of regulatory nature, arising from the rules and processes governing many aspects of data security, from company licensing to usage of website. On location-based service, government regulations have considerations such as restriction on leaking of customers live time location information and disclosing customer personal information, and other regulatory considerations.
This regulation will protect customer’s information and take strict action against any data theft. This regulation will restrict the use of critical information in case sensitive customers such as banking and financial customer, or government and defense customer. This will increase the growth of the LBS market in this industrial vertical. For instance, the California’s Online Protection Privacy Act provides explicit privacy rights and allows users to know how their information will be used in the future. Furthermore, the cloud security regulations are strongly adhered by almost all AI service providers to operate as global service providers, for instance, the U.S. security regulation is mandatory to be adhered by majority of players located in this country.
In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that are involved in their operations. For instance, the Massachusetts Data Security regulations are majorly focused on security purpose and increasing the privacy of big data analytics. Europe is set to take the advantage of AI for providing data protection facilities to different organizations. For instance, the European Government adopted the new General Data Protection Regulation (GDPR). The act seeks to regulate the collection, storage, and processing of information about individuals. The key aim of GDPR is to protect critical data of business sectors of the European nation.
Furthermore, the GDPR act imposed by the European Government mitigates the risk of cyber security and any potential data breaches. Emerging countries of Asia-Pacific are developing stringent automation regulations, which comprise privacy, government regulatory environment, and intellectual property protection. In July 2017, Indian government took a step toward implementing law against data leakage and enact a data protection framework modeled along the lines of the GDPR. In July 2017, the government of India appointed a Committee of Experts on a Data Protection Framework for India, or Data Protection Committee (DPC), under the chairmanship of Justice B.N. Srikrishna, to study issues related to data protection in India. This committee submitted its report and proposed a comprehensive law for protection of online information of customer in India. This is expected to protect location-based information of customers.
Key Benefits for Stakeholders
The study provides an in-depth analysis of location based services market forecast along with current global location-based technology trends and future estimations to explain the imminent investment pockets.
Information about key drivers, restraints, and location based services market opportunities and their impact analysis on global location based services market trends is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The location based services market analysis from 2022 to 2031 is provided to determine the market potential.
Location Based Services Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 402.4 billion |
 Growth Rate | CAGR of 24.6% |
 Forecast period | 2021 - 2031 |
 Report Pages | 473 |
 By Component |
|
 By Technology |
|
 By Application |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Qualcomm Technologies, Inc. , Microsoft Corporation, Oracle Corporation, HERE, Cisco Systems, Inc., AT&T Inc., ALE International, Airtel India., Google LLC, IBM Corporation, Apple, Inc. |
Analyst Review
A location-based service (LBS) is a group of services, provided by software, that enable users to access location-specific data and other online services. These features include mapping and navigation, local search and information, social networking and entertainment, proximity marketing, asset tracking, and others. In order to deliver information, entertainment, or security, location-based services provide real-time geo-data from a variety of smart devices, such as smartphones. The penetration of smart devices like sensors, IoT, and other IoT-related technologies are some of the key drivers boosting the growth of the market for location-based services.
The global location-based services market is expected to register high growth due to rapid centralization and digitization of business processes to streamline all operations into a single platform are expected to drive industry growth. Thus, increase in adoption of location-based services, owing to its security is one of the most significant factors driving the growth of the market. With surge in demand for location-based services, various companies have established alliances to increase their capabilities. For instance, in June 2020, HERE Technologies (Netherlands) collaborated with the University of Nebraska-Lincoln (U.S.) to fuel the ongoing fight against COVID-19 and future pandemics through location-based technology and services under the Human Unlimited tech4good foundation initiative.
In addition, with further growth in investment across the world and the rise in demand for location-based services, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in May 2020, HERE Technologies (Netherlands) launched a new route planning tool that helps SMEs optimize the delivery of goods and services to meet unprecedented customer demand in the COVID-19 pandemic.
Moreover, with increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, in August 2021, Appen Limited acquired Quadrant, a global leader in mobile location data, Point-of-Interest data, and corresponding compliance services to deliver high-quality data to organizations that rely on geolocation for their business.
The global location based services market size was valued at USD 45.4 billion in 2021, and is projected to reach USD 402.4 billion by 2031
The global location based services market is expected to grow at a compound annual growth rate of 24.6% from 2021-2031 to reach USD 402.4 billion by 2031
The key players profiled in the report include ALE International, Apple, Inc., AT&T Inc., Bharti Airtel, LTD., Cisco Systems, Inc., Google Inc., HERE, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, and Qualcomm Inc.
North America dominated in 2021 and is projected to maintain its leading position throughout the forecast period.
Rise in adoption of social media & smart phones, easy availability of GPS, and emergence of location based technology boost the growth of the global location based services market. In addition, increase in number of smartphone users and internet accessibility positively impact growth of the location based services market.
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