Location Analytics Market Anticipated to Generate a Revenue of $38,078.9 Million, Growing at a CAGR of 15.8% from 2020 to 2028Download Sample Reports Overview
The global location analytics market is estimated to be valued at $38,078.9 million by 2028, surging from $11,900.3 million in 2020 at a noteworthy CAGR of 15.8%.
Impact Analysis of COVID-19 on the Location Analytics Market
During the COVID-19 pandemic, the worldwide market for location analytics is expected to grow rapidly. This increase is attributed to an increase in demand for locational data insights in order for firms to have a long-term plan. Businesses can use location-based services to choose the best location for them.
Moreover, during the COVID-19 chaos, location intelligence played a critical role in the operation of city emergency services. Government and health authorities have used location data to map confirmed and current cases, fatalities, and recoveries to determine where COVID-19 infections have occurred. The use of location intelligence has been critical in visualizing and explaining the pandemic's effects. It has aided a variety of enterprises and organizations in their transition to a new way of functioning. Location intelligence has been a huge help in getting employees back to work safely while also ensuring that social distance requirements are followed. Hence, location analytics solutions can help businesses plan in a better and efficient way.
Global Location Analytics Market Analysis
The growth of portable navigation devices, web-mapping services, and smartphone applications are all contributing to the market's expansion. Other factors projected to enhance the market include increased investments in IoT, increased penetration of smart devices, and improved network infrastructure. With the use of physical geography, demographics, and data relevant to the region, location intelligence may help organizations spot hazards and possibilities. Predictive analytics, risk management, real-time pattern and trend tracking, and optimizing company services and operations are some of the other advantages of location intelligence. The growing demand for location intelligence data to improve business operations and supply personalized services is projected to propel the industry forward even more. However, a lack of network infrastructure, data privacy concerns, a lack of knowledge, and other operational hurdles and dangers could stymie the market's growth. Several linked gadgets collect personal information and track users' real-time location, putting them at risk of being used for fraudulent and illegal purposes by hackers and other elements, which could stifle growth in the coming years.
Enterprises now have new options for sales and marketing, as well as reviewing company strategy, thanks to location-based social media. It not only opens up a new channel of communication, but it also aids in engaging with customers, communicating with them, receiving direct feedback, and even conversing with them. Social media sites produce a significant amount of data. Google, for example, processes 3.5 billion searches every day. Facebook's Hive data warehouse has 400 petabytes of data and generates 4 petabytes of new data each day. Every minute, 300 hours of video are uploaded to YouTube. In order to get vital consumer-centric insights and demographics, social media plays a critical role in better understanding customer requirements. Customers' data is collected by several verticals, including retail businesses, athletic arenas, and hospitality, in order to study consumer buying behavior. Social media monitoring based on numerous location-specific brands has become easier thanks to location-based social media. These new opportunities necessitate a fresh approach, which could be realized through the use of location analytics software or solutions.
Global Location Analytics Market, Segmentation
The global location analytics market is segmented based on application type, deployment type, component type, location type, vertical and region.
The application type sub-segment is further classified into remote monitoring, sales & marketing optimization, asset management, risk management and facility management. Among these, the remote monitoring sub-segment is anticipated to have the fastest growth and surpass $8,552.4 million by 2028, with an increase from $2,123.6 million in 2020.
Your IT team can remain on top of events from wherever they are via remote monitoring, and automation can fill in the gaps. Investing in remote network monitoring has a few distinct advantages, like increased security and lower total cost of ownership. These characteristics contribute to the sub-expansion segments.
The component segment is further divided into solutions and services. The solutions sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $19,773.1 million during the analysis timeframe.
The growing usage of spatial data and analytical tools, the growing requirement for predictive analytics for organizations, and the expanding use of location-based applications among consumers are all major growth drivers for the solution sub-segment. In addition, location analytics solutions provide social, geographical, physical, and emotional indications that aid firms in increasing profits.
The deployment segment is further divided into cloud and on-premise. The on-premise sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $16,338.3 million during the analysis timeframe.
The market for on-premise enterprise application software is expected to grow due to the data privacy and security it provides. Another trend driving the growth of the sub-segment is an increased desire to support local businesses based on trust, community spirit, and changing work life patterns.
The location type sub-segment is further categorized into indoor location and outdoor location. The outdoor sub-segment is predicted to have rapid growth and generate a revenue of $25,831.1 million by 2028.
Businesses may map, analyze, and share data in the context of their location using location intelligence. Market evaluation, site selection, risk management, asset tracking, and other essential company needs can all benefit from AI machine learning with LI. In a nutshell, machine learning manages complex data, whereas location intelligence provides vital context to that data. These advancements in technology might act as the key growth factors for outdoor location analytics.
The vertical type sub-segment is further categorized into BFSI, retail, healthcare, hospitality, retail & consumer goods, transport & logistic, it & telecom, media and entertainment, government & defense, and others. The transport & logistic sub-segment is predicted to have rapid growth and generate a revenue of $4,384.3 million by 2028.
The rise of logistics automation, last-mile deliveries, and lead time reductions and cost savings as a result of multi-modal system adoption are some of the drivers projected to fuel market expansion. Furthermore, the e-commerce industry employs logistics services to manage and oversee e-commerce companies' supply chains, allowing these companies to focus on marketing and other business operations. As a result of the multiple benefits that logistics provides to the e-commerce industry, the use of logistics services is increasing at a rapid pace, propelling the logistics market forward.
The location analytics market for the North American region is projected to witness rapid growth. This market generated a revenue of $3,562.9 million in 2019 and is further projected to reach up to $10,791.2 million by 2028.
Location analytics services are acquiring huge growth potential in North America, and the region has emerged as a global leader in big data analytics. The increased demand for geospatial engines, combined with high geospatial readiness, is propelling significant market expansion across North America.
Key Players in the Global Location Analytics Market
- SAP SE
- IBM Corporation
- SAS Institute
- Cisco Systems
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Location Analytics Market
- Bargaining Power of Suppliers: The suppliers in the location analytics market are moderate in number. Several companies are working on product designs that use different raw materials to avoid changing the supplier if there is a hike in the price of a particular material. Thus, there is less threat from the suppliers.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: Buyers have huge bargaining power; they demand best services at low prices. This increases the pressure on the location analytics test providers to offer the best service in a cost-effective way. Thus, buyers can freely choose the convenient service that best fits their preference.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Companies entering the location analytics testing market are adopting technological innovations such as developing an innovative software application to attract clients. Also, these companies are implementing various effective strategies such as offering discounts and value propositions. Yet, the investment cost is high.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: There are no alternative products for location analytics.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including IBM corporation, Cisco Systems, and Google. These companies are launching their location analytics products in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.