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1054553

Location Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Published: | Mordor Intelligence Pvt Ltd | 120 Pages | Delivery time: 2-3 business days

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Location Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 120 Pages
Delivery time: 2-3 business days
  • Description
  • Table of Contents

The Location Analytics market is expected to register a CAGR of 19.7% during the forecast period (2021 - 2026). Moreover, the COVID-19 impact had a varying degree of impact on the location analytics market, primarily due to the diverse effect of the pandemic on the end-user industries that deploy the services. Overall, the market was impacted negatively, although solid recovery is expected to drive the demand for location analytics over the forecast period.

Key Highlights

  • Location analytics has emerged significantly during the past few years. It is increasingly being used for locating friends in an area, locating the nearest restaurant, or advertising deals to shoppers in the nearby area. It gives users access to relevant and up-to-date information about their surroundings and allows businesses to update their customers regarding their orders. All these location analytics applications offer a dynamic user experience, providing a convenient method for interacting business enterprises with customers.
  • The fastest developing positioning methods are based on a combination of mobile positioning and satellite-based GPS. With more widespread methods, like global cell identity (CGICTA) and enhanced observed time difference (E-OTD), the practical precision falls in the range of 50-1000 m. These technologies create opportunities for the end-users based on the accuracy needed for specific applications' location identification.
  • With the arrival of cloud and IoT systems, companies are now automating most of their operations. The healthcare sector is also anticipated to witness a more significant number of applications. The increasing IoT applications, devised with healthcare requirements, are supposed to contribute to the growth of the market study for the healthcare vertical. For instance, Texas Health saved USD 412,000 using the real-time location-based system, as medical equipment is now readily located and maintained.
  • The rise in all the customer-facing industries has led to the introduction to wi-fi location analytics system that allows the customers to connect through on-site wi-fi, which opens a direct channel of communication that enables the retail centers and similar others to understand their customers better and accordingly, deliver products as per the customer's needs. Understanding the customer's needs via this method helps maximize retail output and retail services. Different analytics solutions are pretty popular now, such as web analytics. Location-based analytics will become the need of the hour for designing and measuring the experiences of customers. Soon, location analytics solutions will become commonplace in the marketplace.
  • Furthermore, many retail firms are implementing Location analytics in their marketing strategy. For instance, Walgreens uses Location analytics to encourage customer loyalty by pushing a notification that lets users open their app every time they enter a specific area. The user can further view promotional offers by looking at their account details. The implementation of Location analytics in retail is, thus, promoting the market.

Key Market Trends

FMCG and E-Commerce Sector is Expected to Hold Significant Market Share

  • There has been an increasing trend in e-commerce establishments since the past decade. Mobile apps have contributed to their more tremendous success due to the personalization features. They are easier to use and form a direct link between the brands and customers, thus, enabling high levels of consumer engagement.
  • Location analytics Mobile apps help e-commerce stores analyze the current market and consumer behavior, resulting in better market strategies. E-commerce services based on user geographic location have emerged as a significant segment of modern information services. In these user-intensive applications, quality of service is essential, and design methods rely on software standards to achieve quality.
  • Moreover, E-commerce applications provide tailored offers to customers that reside in specific locations. These offers are delivered to customers through personalized notifications, which are more effective than general-purpose push notifications.
  • In other words, marketplaces rely on artificial intelligence to identify locations and popular products. Once they have arranged the data, sellers can have their inventory shipped to the final location, incurring a one-time cost.
  • Further, Warehouses are also using location analytics technologies to meet surging e-commerce demand, especially after the pandemic. In a survey of small- and medium-sized warehouse operators conducted by BizTechInsights on behalf of Zebra, 55% of respondents said they were planning to transform their operations to gain real-time guidance, improve decision-making and ensure that their performance was data-driven.

Asia Pacific is Expected to Account For Significant Market Share

  • Japan is home to one of the major automotive industries and is also a prominent exporter. With motor vehicle exports in value terms amounting to 12.8 trillion yen in 2020 and auto-related employment in Japan totaling 5.49 million people (as per Japan Automobile Manufacturer Association), the automotive industry is one of the Japanese economy's core industrial sectors and driving the location analytics market.
  • With such a growing automotive industry, Japan has a well-built navigation infrastructure and focuses on building technology and infrastructure for autonomous vehicles. The country is implementing 3D maps with self-driving vehicles, offering disaster information via car navigation systems, an AI-based assistant for car navigation systems.
  • According to the 48th China Statistical Report on Internet Development, internet users totaled 1.011 billion. The internet penetration rate reached 71.6% in the country as of June 2021, which is enormous considering the country's population. The high internet penetration rate and expanding smartphone audience are expected to create significant opportunities for location analytics solutions.
  • India's social media penetration is growing significantly. In India, there are about 448 million social media users as of January 2021, and it has increased by 78 million between 2020 and 2021. WhatsApp is the most used app in India, followed by YouTube, Facebook, Instagram, and Twitter. Besides, various major social media enterprises are increasingly focusing on increasing their number of active users.
  • Such trends show the excellent potential for the growth of the Location Analytics market in the country and encourage various vendors to include the service in their portfolio. For instance, in August 2021, IT services primary Wipro Ltd announced that it has partnered with HERE Technologies to offer location analytics solutions to customers from energy and utilities, manufacturing, transport and Logistics, telecom, and automotive industry verticals.

Competitive Landscape

The Location Analytics Market is highly competitive owing to multiple vendors providing analytics solutions to the domestic and international markets. The market appears to be moderately fragmented, with the significant vendors adopting strategies for mergers and acquisitions, strategic partnerships, among others, to expand their reach and stay competitive in the market. Some of the recent developments in the market are:

  • July 2021 - INRIX Inc. announced INRIX IQ Location Analytics, a powerful new cloud-based LBS application that provides retailers, investors, and other business professionals the insights to open new stores, increase revenue, and maximize return on investment.
  • June 2020 - Microsoft partnered with SAS to further shape the future of analytics and AI. The two companies will enable customers to efficiently run their SAS workloads in the cloud, expanding their business solutions and unlocking critical value from their digital transformation initiatives. As part of the partnership, the companies will migrate SAS' analytical products and industry solutions onto Microsoft Azure as the preferred cloud provider for the SAS Cloud.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 50663

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHT

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Suppliers
    • 4.2.2 Bargaining Power of Consumers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Intensity of Competitive Rivalry
    • 4.2.5 Threat of Substitute Products
  • 4.3 Assessment of Impact of COVID-19 on the Market

5 MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Increasing Use of Spatial Data and Analytics in Various Industries
    • 5.1.2 Growing Propensity of Consumers Toward Applications that Use Location Data
  • 5.2 Market Restraints
    • 5.2.1 Data Privacy Issues and Growing Regulations

6 KEY FACTORS INFLEUNCING THE MARKET

7 MARKET SEGMENTATION

  • 7.1 By Geography
    • 7.1.1 North America
    • 7.1.2 Europe
    • 7.1.3 Asia Pacific
    • 7.1.4 Latin America
    • 7.1.5 Middle East and Africa

8 COMPETITIVE LANDSCAPE

  • 8.1 Company Profiles
    • 8.1.1 Top Location Analytics Vendors
      • 8.1.1.1 Microsoft Corporation
      • 8.1.1.2 SAS Institute Inc.
      • 8.1.1.3 Tableau Software LLC (Salesforce)
      • 8.1.1.4 TIBCO Software Inc.
      • 8.1.1.5 QlikTech International AB
    • 8.1.2 Pure-play Vendors
      • 8.1.2.1 Google LLC
      • 8.1.2.2 TomTom International BV
      • 8.1.2.3 Esri Technologies Ltd
      • 8.1.2.4 HERE Technologies
      • 8.1.2.5 Alteryx Inc.
    • 8.1.3 Other Key Vendors Operating in the Market
      • 8.1.3.1 Cisco Systems Inc.
      • 8.1.3.2 SAP SE
      • 8.1.3.3 Pitney Bowes Inc.
      • 8.1.3.4 Hexagon AB
      • 8.1.3.5 IBM Corporation
      • 8.1.3.6 Galigeo
      • 8.1.3.7 CleverAnalytics AS
      • 8.1.3.8 Lepton Software

9 INVESTMENT ANALYSIS

10 FUTURE OF THE MARKET