Indoor Location-based Services Market (2023 - 2030) Size, Share & Trends Analysis Report By Product, By Technology, By Application (Monitoring, Tracking, Proximity, Navigation, Others), By End-use, By Region, And Segment Forecasts

Indoor Location-based Services Market Summary

The global indoor location-based services market size was valued at USD 15.48 billion in 2022 and is projected to reach USD 45.16 billion by 2030, growing at a CAGR of 14.1% from 2023 to 2030. Increasing penetration of connected devices, such as mobile phones and tablets, worldwide is expected to drive the market over the forecast period.

Advancements in infrastructure facilities such as shopping malls, skyscrapers, and hi-tech parks across various regions are leading to increased implementation of indoor LBS. Most educational institutes and business organizations worldwide are adopting virtual private networks (VPNs) for data protection, which enables them to adopt location-based services.

Indoor LBS is also used to provide assistance and security. Government authorities' spiraling use of monitoring devices to track public activities is also poised to stoke the market's growth. Apart from this, the growing implementation of location-based services in the retail sector for promotional purposes likely benefits the market's growth.

Technological advancements encourage industry players to use analytics and business intelligence to enhance location accuracy, thereby increasing tracking efficiency. However, the real-time accuracy of the information remains a challenge for industry participants.

Application Insights

The tracking segment held the largest revenue share of 30.9% in 2022. Monitoring and tracking assets are major uses of location-based services. The use of location-based services for tracking valuable and sensitive assets, such as information hardware in defense, is estimated to spur the segment's growth.

The proximity segment is expected to grow at the fastest CAGR of 17.2% over the forecast period. It enables companies to provide customers with product information based on location, promoting customer engagement. Using location-based services for geo-targeting is anticipated to trigger the market's growth.

Product Insights

The location-based advertising services segment accounted for the largest revenue share of 15.0% in 2022. Since several companies are using location-based applications to promote their products, the segment is estimated to witness significant growth over the forecast period. Promotional information, such as coupons and discounts, is offered through indoor LBS, which is expected to accelerate the segment's growth further.

The proximity beacons segment is expected to grow at the fastest CAGR of 17.9% during the forecast period. Proximity beacons are used for hyper-local advertising and other types of location-based promotion. These beacons are affordable and easy to install and hence, a preferred choice of marketers. Furthermore, advancements in technology enable proximity beacons to support Bluetooth and Wi-Fi connectivity, making them suitable for various purposes.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 40.8% in 2022. The region is home to key industry players operating in the market that has pioneered the development of location-based service technologies for various applications. Moreover, these companies are very aggressive when it comes to service innovation, as a result of which, the application portfolio of indoor LBS continues to expand.

Asia Pacific is expected to grow at the fastest CAGR of 18.9% during the forecast period. The growing penetration of retail companies in the region to likely augment the regional market. Furthermore, the region's infrastructural development, such as commercial offices, townships, and shopping malls, offers lucrative opportunities to implement location-based services.

Technology Insights

The Wi-Fi/WLAN, BT/BLE, beacons, and A-GPS segment accounted for the largest revenue share of around 28.3% in 2022. Continued deployment of Wi-Fi networks for data security is projected to foster the segment's growth. Moreover, the availability of low-cost beacons and the rollout of ultra-wideband frequencies encourage companies to deploy LBS for marketing applications.

Soaring Wi-Fi/WLAN technology use in the telecom industry and the growing use of smartphones and internet services are poised to stoke market growth. Furthermore, shopping malls increasingly use Wi-Fi/WLAN technology to know consumer buying behavior for higher customer engagement and increased sales. Rising preference for wireless transactions and data transfers will likely fuel the demand for the Wi-Fi/WLAN, BT/BLE, Beacons, and A-GPS segment over the forecast period.

The NFC and RFID technology segment is estimated to register the fastest CAGR of 17.4% over the forecast period. It is vital in facilitating precise and real-time location tracking and identifying objects and individuals within indoor environments. The increasing demand for efficient asset tracking and management solutions drives the RFID and NFC technology market.

End-use Insights

The retail segment held the largest revenue share of 23.3% in 2022. Location-based services are largely used in the retail sector for purposes such as marketing and customer retention. These services use applications that can be installed on mobile phones and various other connected devices.

Depending on the location, a customer can receive information about restaurants, parks, institutions, and hospitals, among others as well as other data, such as ratings, reviews, and product descriptions. It allows retail companies to enhance the shopping experience of customers. Moreover, these services offer real-time advertisements to alert customers about offers and sales at various stores.

LBS allows retailers to get information about customers’ interests within the store and their purchase history, which allows them to assess customers’ needs and effectively provide them with immediate value. It is further projected to stir up the demand for indoor LBS in the retail segment.

The others segment is expected to grow at the fastest CAGR of 19.9% over the forecast period. It consists of education and manufacturing. The increasing emphasis on technology integration in educational institutions has created a demand for innovative solutions that enhance the learning experience. It allows educational institutions to deliver location-based services and personalized content to students and staff within campus premises.

Moreover, with the help of indoor positioning technologies, manufacturing facilities can track the movement of materials, components, and finished products within the facility, significantly reducing time wastage in searching for items and enhancing overall operational efficiency.

Key Companies & Market Share Insights

The market is highly competitive, and the players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. For instance, in February 2023, Radisys, an American company specializing in open telecom solutions, launched Radisys ReachPoint. This pioneering intelligent network-oriented geolocation platform empowers mobile network operators to provide instantaneous geolocation services, even within regions with limited GPS connectivity. The ReachPoint Navigation application creates a digital blueprint of structures or areas, enabling users to pinpoint precise destinations through vocal prompts and optimal route suggestions.

Recent Developments

• In December 2022, Oriient New Media Ltd, a software-based IndoorGPS provider that utilizes Earth's magnetic field, launched its solution on the Google Cloud Marketplace. It enables customers with existing commitments on the platform to procure and receive consolidated billing through a single channel conveniently. The availability of Oriient's solution on the marketplace aims to assist retailers in enhancing the in-store shopping experience by incorporating additional digital touchpoints and leveraging customer journey analytics for operational improvements and increased profitability.

• In September 2022, Inpixon, an indoor intelligence company, joined forces with Schauenburg Systems, an OEM specializing in mine safety systems and equipment. The collaboration aims to promote Inpixon's real-time location technologies to mining companies operating in South Africa. The agreement focuses on selling numerous nanoLOC chips and other core technologies from Inpixon that provide collision avoidance, offering real-time tracking and proximity applications for the mining industry.

• In July 2022, Esri, a geographic information system company, launched ArcGIS IPS, an indoor positioning system designed for facility wayfinding. This innovative solution empowers organizations to incorporate indoor location services throughout their facilities and campuses. By utilizing ArcGIS IPS, maintenance workers can efficiently review service requests and promptly identify and navigate to specific locations inside buildings where repairs are required.

• In January 2022, HERE, a location data and technology platform, launched Indoor Map as a service. This comprehensive solution for indoor mapping is made possible through a partnership with Navenio, a software company. By leveraging this technology, businesses can create high-definition, 3D indoor maps of their buildings, accurately representing real-world data.

Indoor Location-based Services Market Report Scope

Global Indoor Location-based Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global indoor location-based services market report based on product, technology, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Analytics and Insights

  • Automotive Services

  • Campaign Management

  • Consumer Services

  • Enterprise Services

  • Location and Alerts

  • Location-based Advertising Services

  • Maps

  • Precision Geo-targeting

  • Proximity Beacons

  • Secure Transactions and Redemptions

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Context Aware Technology

  • OTDOA and E-OTDOA

  • RFID and NFC

  • Satellite, Microwave and Infrared Sensing

  • Wi-Fi/WLAN, UWB, BT/BLE, Beacons, and A-GPS

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Monitoring

  • Navigation

  • Proximity

  • Tracking

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Aerospace and Defense

  • BFSI

  • IT and Telecommunication

  • Energy and Power

  • Government

  • Healthcare

  • Hospitality

  • Retail

  • Transportation & Logistics

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE