Detailed analysis of location analytics market
Location analytics is the process of getting information from locations and geographical data. Analytics based on location are used to depict information or data, particularly business-driven data that frequently has a geographic component. Both real-time and historical geographical data can be subjected to location analytics. When tracking live locations, such as courier and postal services that must maintain track of package deliveries in real-time, real-time location analytics is used.
The market value of location analytics in 2021 was USD 14.5 billion and will be worth USD 55.14 billion by 2030, growing at a 16% CAGR during 2021-2030.
The location analytics market is expanding as a result of reasons such as the increasing demand for predictive analytics in contemporary business decision-making, consistent innovation in geospatial technology, and rising usage of spatial data and analytics tools. In addition, a lack of understanding of the advantages of location analytics, worries about data security and privacy, and hefty upfront costs are restraints on industry expansion.
The advancements of the Internet of Things (IoT) and the enormous volume of data that connected devices produce, as a result, have increased the demand for location analytics tools. Asset management is becoming increasingly important across all industry sectors to enhance operational efficiency and produce sizable quantities of money. Therefore, it is probable that the market is driven by elements, including the increase of three-dimensional data and the significance of competitive intelligence and predictive analytics solutions for fostering company expansion.
Consumer privacy concerns are vital when processing location data because numerous regulatory restrictions may make it impossible to get location data without the user’s consent. Data storage, location sharing, and use of positional data are all subject to legal restrictions. Their restricted access constraints organizations’ usage of location-based information analytics solutions for consumer location data. Individuals’ worries over sensitive data are preventing the growth of the global location analytics market in the next few years.
Data from external sources, such as weather, mobility/traffic, and satellite data, can be used to map demands and potential. Employing the right information and technology has become crucial for businesses to mitigate interruptions during COVID-19 and maintain control of their supply chains. For instance, businesses like Instacart and Shipt employed location analytics technology due to a demand rise of almost 220 percent and 130 percent, respectively, making it challenging for them to track orders.
By Component, the software segment held the majority of the market share in 2020. It is due to the quick uptake of location analytics in organizations to provide customers with personalized & integrated goods and services. Location intelligence software enables organizations of all sizes to gain a competitive edge through enterprise mapping tools. However, because end users embrace the service widely, location analytics software is guaranteed to operate effectively throughout the process.
On the basis of location type, with a 53.77% share, the Outdoor segment held the maximum market position. Outdoor location analytics are being used by businesses to monitor their fixed assets and cut operational expenses, which is fueling the market’s expansion.
By Deployment, with the largest market share of 60.23%, the cloud segment ruled the overall market. Location-based cloud computing is rapidly gaining acceptance among global IT firms like Oracle, IBM, and others. Location analytics combined with cloud computing creates about USD 300 billion worldwide revenue. All of these elements are greatly increasing the market’s expansion.
By Vertical, the retail segment ruled the overall market with the largest share of 33.67%. The retail industry makes use of location intelligence technologies to assess the possibilities of a specific business location. This also applies to retail establishments looking into new sites. Additionally, the retail center developers use this website to look for a suitable location for their construction. All of these elements are hastening this industry’s expansion.
North America led the entire regional market with a share of nearly 40.11%. The largest market share is due to greater usage of automation and technical advancements like the Internet of Things (IoT) and Machine Learning (ML). Additionally, businesses are eager to utilize these data through analytical solutions because of the vast amounts of data produced by computers, GPS, and other devices. The region’s location analytics market is expanding due to the rising need for real-time data analytics solutions across numerous industries, including retail, government and defense, BFSI, transportation, and others, to enhance corporate performance and efficiency.
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The market value of location analytics in 2021 was USD 14.5 billion and will be worth USD 55.14 billion by 2030, growing at a 16% CAGR during 2021-2030. The Internet of Things and the growing volume of geographical data generated by various data sources, including smartphones, tablets, laptops, GPS units, cameras, sensors, and social media, are the main factors fueling the market’s expansion. Additionally, the demand for predictive analysis is rising, and customers are using location-based analytics more frequently to boost sales, fueling the market’s expansion.