Location Based Services Market Size, Share, Growth Analysis, By Component(Platform, Services, Hardware), By Location Type(Indoor, Outdoor), By Application(GIS, Navigation, Tracking, Social Media), By Vertical(Logistics, Retail, Healthcare, Media), By Region - Industry Forecast 2024-2031

Location Based Services Market Driver

• The market is projected to grow as a result of smart phones, social media, and the ease with which GPS technology is accessible

One of the key factors propelling the expansion of the global location based services market is the rising use of smartphones and other wireless devices. The popularity of location-based check-in applications, improvements in communication technology's analytic capabilities, and the accessibility of inexpensive GPS-mounted gadgets are further factors that are anticipated to contribute to the growth of the location based services industry. Additionally, increasing use of social media, mobile networking, and the Internet of Things (IoT), communications breakthroughs and ongoing research & development in 4G and 5G technologies in economically expanding regions are few of the major reasons boosting the global location based services market growth.

• Location-based services are expected to be more in demand across industries as a result of the development of location-based technology.

The global location based services market is expected to have significant development potential because of the persistent demand for location-based applications in e-commerce, food delivery, tourism, and social networking applications. Retailers can assess consumer preferences using location based services (LBS), which also provide quick access to information about goods or services. For instance, based on consumer location, retailers may arrange their advertising efforts for their closest shop or area-based offers. Retailers will benefit from this as it will enable them generate more revenue and provide their customers customised goods and services.

High functionality location based services are becoming more prevalent in the automotive industry. LBS help truck and vehicle drivers determine the optimum route, which decreases idle time and boosts productivity. Vehicle telematics, navigation, emergency services, asset tracking, traffic services, and emergency services are just a few of the value-added services that automakers make sure to offer to their consumers.

Location Based Services Market Challenge

• High pricing might limit the growth of location based services market

All the participants in the mobile ecosystem, such as users, advertisers, marketing vendors, and advertising service agencies, have significant challenges when it comes to pricing for location based services. Voice and data services, including applications, have very different price structures. For voice services, network operators often use per-minute and flat rate pricing structures, while open-ended pricing structures are used for data services. The current system of charging customers based on airtime and data usage has not been well received by customers. Future high-speed networks (4G and higher) may open up new market opportunities with their straightforward and alluring pricing structures. Content providers who intend to make money through promotions and location-based advertising that will draw customers to a storefront face some difficult pricing decisions. It has not yet been tested how much users are prepared to pay for LBS or the best way to entice them with promotional offers and bundled services in a mobile setting. The uptake of location based services and the resulting consumer demand will be substantially impacted by prices. Customers want these services to be straightforward, transparent, and worth the money they spend on them.

• A major threat to user privacy

The level of customer privacy protection provided by network operators will determine how widely location based services are adopted. Unwanted mobile advertising is frequently viewed as obtrusive, and some customers resent marketing initiatives that invade their privacy. The providers of location based services need to be aware of the delicate balance between personalisation and resolving privacy issues. Customer data should be gathered and processed in order to give customised context-specific location based services. However, suitable management and security measures should be implemented while handling customer personal data. Mobile devices have a high degree of personalization, which opens up a lot of opportunity for on-demand customised location based services. Privacy protection for customers will be crucial as these services are introduced.