Indoor Location-based Service Market

Indoor Location-based Service Market Outlook 2031

The global indoor location-based service market size was USD 15.48 Billion in 2022 and is anticipated to reach USD 50.74 Billion by 2031 register a considerable CAGR 14.1% during the forecast period, 2023-2031. The growth of the market is attributed to the increasing use of location-based services for marketing and for advertising at the hyper-local level.

Indoor location-based services (LBS) are specific to location mobile services. Indoor LBS services offer various information and function to the users of tablets and smartphones based on its location. This technology is typically used in places, such as mall, hospital, airport, and other indoor venues. LBS technology uses the internal sensors mobile to estimate the device’s position using complex statistical algorithms.

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By uniting the incoming data from these sensors, a very correct position can be detected, with little to no latency. Indoor LBS are usually used for the purpose of advertising and tracking also it is used to provide assistance and security.

The COVID-19 pandemic outbreak had considerable impact on the market. During pandemic, lockdown imposed by government bodies resulted in less crowd at public places including mall, airports, and stadiums, which hampered the demand of indoor LBS. However, government is using this service to track the spread of virus, for predication of next hotspot of COVID-19, and smart quarantining.

As well as, organizations are also planning to resume work from office so they are deploying this service for monitoring employees, virus tracking, contact tracing, and reporting, which is in turn increasing the demand of indoor LBS.

Indoor Location-based Service Market Trends, Drivers, Restraints, and Opportunities

• Rising use of connected devices, such as smartphones and tablet is one of the key factor driving the market growth.
• Increasing deployment of home area network and local area networks, such as WLAN and Wi-Fi is projected to drive the market expansion during the forecast period.
• Escalating concerns regarding privacy protection acts as a major challenge that can restrict the market growth in the coming years.
• Growing concern about real-time accuracy of the information can hamper the market growth during the projected timeline.
• Rising need of precise location detection for contact tracing due to COVID-19 pandemic is projected to create significant growth opportunities for the market.

Scope of The Indoor Location-based Service Market Report

The report on the global indoor location-based service market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Indoor Location-based Service Market Segment Insights

Enhance data security drive the Wi-Fi/WLAN, UWB, BT/BLE, beacons, & A-GPS segment

Based on technology, the global indoor location-based service market is fragmented into satellite, microwave, & infrared sensing, OTDOA & E-OTDOA, Wi-Fi/WLAN, UWB, BT/BLE, beacons, & A-GPS, context aware technology, and RFID & NFC. The Wi-Fi/WLAN, UWB, BT/BLE, beacons, & A-GPS segment is expected to grow at a rapid pace during the forecast period attributed to installation of Wi-Fi networks for enhancing data security.

Furthermore, shopping malls are adopting Wi-Fi/WLAN technology to get information of consumer buying behavior for increased sales and higher customer engagement, which is projected to accelerate the segment growth further.

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Healthcare segment is projected to expand at considerable CAGR

In terms of end-users, the market is divided into retail, healthcare, energy & power, BFSI, government, hospitality, transportation & logistics, aerospace & defense, IT & telecommunication, and others. The retail segment is expected to account for a major market share during the projected timeline attributed to need of customer retention and marketing.

Additionally, retail sector is using LBS service for accessing the information of customer about purchasing history, which helps them to customize the user experience, is major driver of the segment. On the other hand, the healthcare segment is projected to expand at a considerable CAGR during the forecast period owing to rising trend of integration of LBS with wearable sensors for health monitoring and providing information of nearest healthcare facility in case of injury.

Promotion of products using LBS increases the location-based advertising services segment market share

On the basis of products, the global indoor location-based service market is segregated into proximity beacons, maps, location & alerts, consumer services, automotive services, secure transactions & redemptions, precision geo-targeting, location-based advertising services, enterprise services, campaign management, and analytics & insights.

The location-based advertising services segment is estimated to account for a significant market share during the forecast period due to several companies, which are using LBS applications for promoting their products. Moreover, marketing information, such as discounts and coupons, are particularly being offered through indoor LBS, is driving the segment growth further.

However, the proximity beacons segment is anticipated to grow at a high CAGR during the projected period attributed to the beacons that are easy to install and affordable hence, a preferred choice of organization for hyper-local marketing.

Use of LBS for tracking sensitive and valuable assets drive the tracking segment

Based on applications, the market is fragmented into proximity, monitoring, tracking, navigation, and others. The tracking segment is estimated to account for a major market share during the forecast period due to use of LBS for tracking sensitive and valuable assets, including information hardware in defense.

On the other hand, the proximity segment is expected to expand at a robust CAGR in the coming years attributed to rise in adoption of LBS by companies to provide clients with product information based on their locations thus, promoting customer engagement.

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North America is anticipated to constitute a key market share

In terms of region, the global indoor location-based service market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to established development of location-based service technologies by the key players in the region for various applications.

However, the Asia Pacific market is anticipated to grow at a rapid pace during the forecast period due to the growing penetration of retail companies and rapid infrastructure development, such as hospitals, and offices leading to surge in demand of indoor LBS.

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Segments

The global indoor location-based service market has been segmented on the basis of

Technology

• Satellite, Microwave, & Infrared Sensing
• OTDOA & E-OTDOA
• Wi-Fi/WLAN
• UWB, BT/BLE, Beacons, & A-GPS
• Context Aware Technology
• RFID & NFC

End-Users

• Retail
• Healthcare
• Energy & Power
• BFSI
• Government
• Hospitality
• Transportation & Logistics
• Aerospace & Defense
• IT & Telecommunication
• Others

Products

• Proximity Beacons
• Maps
• Location & Alerts
• Consumer Services
• Automotive Services
• Secure Transactions & Redemptions
• Precision Geo-targeting
• Location-based Advertising Services
• Enterprise Services
• Campaign Management
• Analytics & Insights

Applications

• Proximity
• Monitoring
• Tracking
• Navigation
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Cisco Systems Inc.
• Google, Inc.
• Inside Secure Corp.
• Micello, Inc.
• Ruckus Wireless, Inc.
• Qualcomm, Inc.
• YOOSE Pte. Ltd.
• Apple, Inc.
• GloPos Technologies
• HERE Holding Corp.
• IndoorAtlas Ltd.
• Microsoft Corp.
• Sprooki Pte Ltd.
• Navizon, Inc.
• Shopkick, Inc.

Competitive Landscape

Key players competing in the global indoor location-based service market are Cisco Systems Inc.; Google Inc.; Inside Secure Corp.; Micello, Inc.; Ruckus Wireless, Inc.; Qualcomm Inc.; YOOSE Pte. Ltd.; Apple Inc.; GloPos Technologies; HERE Holding Corp.; IndoorAtlas Ltd; Microsoft Corp.; Sprooki Pte Ltd.; Navizon Inc.; and Shopkick, Inc.

Companies are focusing on investments in opening new stores to expand offerings across the globe. Furthermore, companies are widely engaging in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.

• For instance, in June 2016, Cisco Systems, Inc. announced partnership with Rockwell Automation, Inc. This partnership was aimed to introduce LBS in its wireless product-access points. This products can be used in indoor and industrial locations for tracking assets, products, and peoples.
• In 2017, March 2017, Apple Inc. established its new stores in Nanjing, Miami, and Cologne for expanding sales in the region. Along with expansion of sales the company intended to grow the usage of mobile and location-based services.