The global location intelligence market size is anticipated to reach USD 25.25 billion by 2025, according to a new study by Grand View Research Inc. It is anticipated to expand at a CAGR of 15.3% over the forecast period. Increasing penetration of network infrastructure and smart devices coupled with rapid digitization give organizations access to diverse information about consumers, system performance, and assets among others. This factor is anticipated to spur the global location intelligence market. Furthermore, rising demand for location data to enhance business operations and to deliver personalized services is expected to further propel market growth.
Location intelligence is a business intelligence tool capability enabled by data collected from Internet of Things (IoT) and Geographic Information System (GIS) embedded devices. It enables businesses to identify consumer trends, buyer behavior, and other information about niche markets. This helps organizations make informed decisions, deliver better products and services, and mitigate market uncertainties. Organizations are incorporating real-time location monitoring capabilities in various devices, especially smartphones, for monitoring and recording geographic position of consumers to analyze trends, improve customer experience, and optimize business operations.
Majority of consumer electronics manufacturers are incorporating a variety of software and hardware components to collect consumer data over the internet. This enables them to target right audience and gain market share. Booming smartphone and smart devices industry in Asia Pacific (APAC) is expected to drive the market growth. Steady rise of investments in IoT technologies, number of smartphone users, and spending on connected devices in APAC countries are predicted to drive the location intelligence market over the forecast period. However, lack of network infrastructure, data privacy, awareness about geospatial and predictive analytics, as well as various operational challenges can hinder market growth.
Further Key Findings From the Report Suggest:
- North America accounted for the largest market share in 2017, owing to highest adoption of IoT and presence of key players, such as Google LLC, Apple Inc., Qualcomm Inc., TIBCO Software Inc., ESRI, and HERE
- European Commission is heavily investing in IoT infrastructure and location intelligence technologies to accelerate market development in the region
- Asia Pacific is expected to experience significant growth over the forecast period, owing to rising number of smartphone users and service providers, enhancement of networking technologies, and rising use of social media
- Transportation and logistics accounted for over 19.0% of the location intelligence market in 2017
- Technological advancements in network communication, position determination techniques, and sensor technologies enable organizations to adopt various innovative location intelligence tools
- In 2017, sales and marketing optimization and customer management applications accounted for over 20.0% and 17.0% market share respectively. These applications enable assessment of spending patterns, consumer behavior, and forecast sales enabling optimization of profitability.