Location Analytics Market

Location Analytics Market Outlook (2024 to 2034)

The global location analytics market is expected to reach a valuation of US$ 23,382.9 million in 2024 and is projected to climb to US$ 88,218.4 million by 2034, expanding at a CAGR of 14.2% during the forecast period of 2024 to 2034.

The location analytics market represents approximately 30% of the global geospatial analytics market, which is valued at about USD 80.0 billion in 2024.

Report Attributes	Details
Location Analytics Market Size (2023A)	US$ 20,475.4 Million
Estimated Market Value (2024E)	US$ 23,382.9 Million
Forecasted Market Value (2034F)	US$ 88,218.4 Million
Global Market Growth Rate (2024-2034)	14.2% CAGR
East Asia Market Share (2024)	15.3%
North America Market Growth Rate (2024-2034)	13.8% CAGR
Key Companies Profiled	Carto; Cisco; ESRI; Foursquare; Geoblink; Google; HERE Technologies; Hexagon AB; IBM Corporation; Mapbox; Microsoft Corporation; Oracle Corporation; Pitney Bowes; Precisely; Qlik; SAP; SAS; Tableau; TIBCO Software; TomTom; Vaisala; Zebra Technologies; Other Prominent Players

Historic Analysis (2019 to 2023) Vs Future (2024 to 2034) Pathway Analysis

The location analytics market was valued at US$ 20,475.4 million in 2023, growing at a CAGR of 16.1% from 2019 to 2023.

• Short Term (2024 to 2027): This is attributed to the growing adoption of IoT and geospatial AI for real-time visualization. Integrating location-based services into CRM and the increasing demand for geofencing in retail propel the market's growth.
• Medium Term (2027 to 2030): The development of 5G and cloud computing will facilitate seamless deployment of location analytics solutions, thus driving market growth. Additionally, growth is observed in the form of higher adoption rates of smart cities, with further investment in the spatial data infrastructure across town and transportation planning.
• Long Term (2030 to 2034): The market is bound to grow even more when autonomous technology develops further and hyperlocal services are adopted everywhere. Convergence of AR/VR with location analytics and increased usage of predictive analytics in disaster management would drive up the value proposition of the market.

Market Dynamics

What are the factors driving the demand of location analytics?

“Increasing Adoption of Geospatial AI & IoT”

A significant increase in the usage of geospatial AI and IoT devices is one of the central reasons for the development of the location analytics market. Different organizations access the real-time location-based data from the connected devices to an extent that it becomes the key element in understanding consumer behavior, operational efficiency, and supply chain management. Geospatial AI is also a way of bringing democratized decision-making to people making decisions by providing access to location-based intelligence and predictive analytics.

Transportation, retail, and logistics are other industries where the use of these technologies have made the demand for location analytics solutions to go up. Focusing on some advantages, one specific example in transportation is an improved level of asset tracking, which is used to monitor things such as fleet management and foot traffic analysis.

“Increasing Development of Smart Cities and Urbanization Initiatives Worldwide”

Governments and city planners are increasingly investing in location analytics to support smart city projects and urbanization initiatives. In fact, more and more governments and city planners are making the investment of location analytics a high priority to help out with smart city projects and urbanization initiatives. It is worth mentioning that urban mobility, energy, and environment are the three major smart city domains that could take advantage of open data and location analytics technologies. They are also helping to improve unsafe traffic points by analyzing the data concerning these areas and traffic flow patterns and by adding new lanes or repairing old roads.

Location analytics serves as a means to efficient urban planning, traffic management, and resource allocation, by providing spatial insights and real-time monitoring. Location is one of the numerous components of service delivery, and it is convenient to choose the closest and most active option to minimize the problem. The deployment of location-based services, such as smart lighting, smart parking, and waste management, strengthens the city services and sustainability efforts.

For wider adaptation and real good application, the utilization of networks and location, as well as other data in the value chain of a city to enable improved decision-making, is a great possibility. As urban areas become more connected, location analytics solutions will be the main tool to manage infrastructure better, reduce congestion, and enhance residents' quality.

Key factors restraining the market growth

“Privacy Concerns Associates with Location Analytics Solutions”

Although location analytics has proven to yield major operational benefits, many enterprises are still hesitant to implement it because of a variety of reasons. These typically range from the high cost associated with deploying a location analytics solution, a lack of proper location analytics algorithm, rising concern related to privacy and data security.

Privacy concerns are raised through the misuse of location data, where both organizations and customers can face serious legal consequences. As Government regulations and rules restrict the processing of data, sharing of location, and usage of location-based information, and storage of data. Hence, because of the rising concern of individuals regarding data privacy, it limits the growth of the location analytics market.

Country-wise Insights

Why There is High Demand for Location Analytics Services in the United States?

“Robust Adoption of Location Analytics Solutions Across BFSI, IT & Telecom, and Healthcare Sectors”

Attribute	United States
Market Value (2024E)	US$ 6,501.5 Million
Growth Rate (2024 to 2034)	14.1% CAGR
Projected Value (2034F)	US$ 24,323.8 Million

The country's BFSI, IT & telecommunication, and healthcare sectors offer significant opportunities for the location analytics industry. As a result, big businesses are moving toward a cloud-based business model, which encourages them to implement a range of business apps. Additionally, they are spending money on essential location analytics management solutions to guarantee simple data processing, guarantee data security, and enhance customer interactions by offering effective services.

Another factor boosting the market's expansion is the country's abundance of location analytics service providers. The location analytics market in the United States is growing due to many factors such as developing industry need for location-based solutions, growing government support, and advancements in technology. For example, in order to implement analytical tools, the United States government worked with Google LLC and other technology companies in recent years.

Why China’s Location Analytics rise with fastest CAGR in the forecast period?

“Expansion of Power Generating Capacity”

Attribute	China
Market Value (2024E)	US$ 2,014.2 Million
Growth Rate (2024 to 2034)	15.7% CAGR
Projected Value (2034F)	US$ 8,640.5 Million

Over the span of the forecast period, China is anticipated to have the second-largest location analytics market share. A growing trend toward digitalization and a need for centrally managed systems China is seeing a significant increase in the use of location analytics.

The country's growing use of geographic analytics tools and software is anticipated to propel the location analytics market's expansion. It is anticipated that the market would expand due to the numerous new start-ups offering creative solutions at competitive prices and the increase in organization spending in location analytics.

With 73% of Chinese people using the internet as of the end of 2023, the country is likely to see considerable growth in the location analytics market due to its high internet penetration rate and growing smartphone audience.

Category-wise Insights

Which Component Accounts for Leading Share in the Location Analytics Market?

“Dominance of Location Analytics Solutions Over Services Driven by Advanced Capabilities Across Multiple Industry Verticals”

Attribute	Location Analytics Solutions
Market Value (2024E)	US$ 17,209.8 Million
Growth Rate (2024 to 2034)	14.7% CAGR
Projected Value (2034F)	US$ 66,252.0 Million

The market share of location analytics solutions is higher than that of services due to their extensive capabilities in spatial analysis, data integration, and visualization. Solutions like geocoding, thematic mapping, and reporting enable accurate decision-making across sectors including retail (for site selection), BFSI (for risk assessment), and logistics (for route optimization). On the other hand, services-managed and professional included-mainly assist with the setup and upkeep of these solutions. Industries are adopting standalone solutions because to the increased demand for self-service analytics and real-time insights; nonetheless, services are viewed as supplemental and have a lower share than core location analytics software solutions.

Which Industry Vertical Gaining Maximum Market Share?

“Extensive Use of Geospatial Data for Customer Insights and Operational Optimization in Retail Industry”

Attribute	Retail
Market Value (2024E)	US$ 5,682.0 Million
Growth Rate (2024 to 2034)	16.1% CAGR
Projected Value (2034F)	US$ 22,583.9 Million

The retail segment contributes the largest share in the location analytics market due to its excessive usage for geospatial data to optimize store location, understand customer behavior, and improve in-store. Location analytics can be used by retailers for foot traffic analysis, customer segmentation, and targeted marketing. The use of location analytics helps retailers increase sales and improve the experience of engaging with customers more effectively. Growing usage of e-commerce has driven the adaption of geocoding and spatial analytics in last-mile delivery optimization, route planning, and inventory management, thus allowing retailers to provide better, speedier services, driving demand significantly in the sector.

Competitive Landscape

Key market participants in the location analytics services market are Carto, Cisco, ESRI, Foursquare, Geoblink Google, HERE Technologies, Hexagon AB, IBM Corporation, Mapbox, Microsoft Corporation, Oracle Corporation, Pitney Bowes, Precisely, Qlik, SAP, SAS, Tableau, TIBCO Software, TomTom, Vaisala, Zebra Technologies and Other Prominent Players.

Location analytics market players are focusing on strategic acquisitions, partnerships, and integration of technologies to build their portfolios in cloud solutions, geospatial services, and location-based intelligence. The main trends now involve empowering hybrid cloud services with added abilities, integrating advanced mapping APIs, and deploying real-time location systems to support a wide range of industry applications and drive innovation. For instance,

• In June 2023, IBM acquired Agyla SAS to bolster IBM Consulting's capabilities in providing localized cloud solutions to clients in France. By integrating Agyla's expertise, IBM will enhance its portfolio of hybrid multicloud services and strengthen its commitment to advancing hybrid cloud and AI strategies within the region.
• In May 2023, TomTom and Alteryx partnered to seamlessly incorporate TomTom’s Maps APIs into Alteryx products and location insights packages. This integration extends to Alteryx Designer and the recently introduced location intelligence offering on the Alteryx Analytics Cloud Platform.

Segmentation of Location Analytics Industry Research

• By Component :

  • Location Analytics Solutions
    • Geocoding & Reverse Geocoding
    • Data Integration & ETL
    • Reporting & Visualization
    • Thematic Mapping & Spatial Analysis
    • Other Solutions
  • Location Analytics Services
    • Managed Services
    • Professional Services

• By Location Type :

  • Indoor Location Analytics
  • Outdoor Location Analytics

• By Deployment Mode :

  • On-Premises
  • Cloud

• By Organization Size :

  • Small & Medium Enterprises
  • Large Enterprises

• By Application :

  • Risk Management
  • Emergency Response Management
  • Customer Experience Management
  • Remote Monitoring
  • Supply Chain Planning and Optimization
  • Sales & Marketing Optimization
  • Location Selection & Optimization
  • Other Applications

• By Industry Vertical :

  • Retail
  • Manufacturing
  • Government and Defense
  • Media & Entertainment
  • Transportation and Logistics
  • Energy and Utility
  • Telecom and IT
  • Banking and Financial Services
  • Insurance
  • Healthcare, Pharma and Life Sciences

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa