The global indoor LBS market size was valued at USD 1.83 billion in 2018. It is estimated to post a CAGR of 43.3% during the forecast period. Increasing penetration of connected devices, such as mobile phones and tablets, worldwide is expected to drive the market over the forecast period. Furthermore, rising use of location-based services for promotional applications is anticipated to stimulate the growth of the market over the coming years.
Infrastructure development such as retail malls, parks, educational institutes, and hospitals provide lucrative scope for implementation of location-based services (LBS) for navigations and tracking purposes. Moreover, increasing deployment of local area network and home area networks, such as Wi-Fi and WLAN, is projected to provide an upthrust to the indoor LBS 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 of the 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. Spiraling use of monitoring devices by government authorities to track public activities is also poised to stoke the growth of the market. Apart for this, growing implementation of location-based services in the retail sector for promotional purposes is likely to benefit the growth of the market.
Technological advancements are encouraging industry players to use analytics and business intelligence to enhance location accuracy, thereby increasing tracking efficiency. However, real-time accuracy of the information remains a challenge for industry participants.
Location-based advertising service dominated the market in 2018 and was valued at USD 272.2 million. Given that several companies are using location-based applications for promoting their products, the segment is estimated to witness significant growth over the forecast period. Promotional information, such as coupons and discounts, are particularly being offered through indoor LBS, which is expected to further accelerate the growth of the segment.
Proximity beacons will be the most promising product segment. They are anticipated to post a CAGR of 48.0% 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 are enabling proximity beacons to support Bluetooth and Wi-Fi connectivity, thereby making them suitable for various purposes.
Wi-Fi/WLAN, BT/BLE, Beacons, and A-GPS was the leading technology segment in the market in 2018. Continued deployment of Wi-Fi networks for data security is projected to foster the growth of the segment. Moreover, availability of low-cost beacons and rollout of ultra-wide band frequencies are encouraging companies to deploy LBS for marketing applications.
Soaring use of Wi-Fi/WLAN technology in the telecom industry along with growing use of smartphones and internet services is poised to stoke market growth. Furthermore, shopping malls are increasingly using the Wi-Fi/WLAN technology to know consumer buying behavior for higher customer engagement and increased sales. Rising preference for wireless transactions and data transfers is also likely to fuel the demand for the Wi-Fi/WLAN, BT/BLE, Beacons, and A-GPS segment over the forecast period.
Tracking application is likely to register a phenomenal CAGR of 40.8% over the forecast period. Monitoring and tracking assets are major use of location-based services. Use of location-based services for tracking valuable and sensitive assets, such as information hardware in defense, is estimated to spur the growth of the segment.
The proximity segment is expected to exhibit the highest CAGR during the forecast period. It enables companies to provide customers with product information based on their locations thereby, promoting customer engagement. The use of location-based services for geo-targeting is anticipated to trigger the growth of the market.
Retail will be the most promising end-use segment in the indoor location-based services (LBS) market during the forecast period. Location-based services are largely used in the retail sector for purposes such as marketing and customer retention. These services make use of applications that can be installed on mobile phones and various other connected devices.
Depending on the location, a customer can receive information of restaurants, parks, institutions, and hospitals, among others as well as other data, such as ratings, reviews, and product description. This allows retail companies to enhance shopping experience of customers. Moreover, these services also offer real-time advertisements to alert customers about offers and sales going on at various stores.
LBS allows retailers to get information about customer’s interests within the store and information about their purchase history, which allows retailers to effectively assess customer’s needs and to provide them immediate value. This is further projected to stir up the demand for indoor LBS in the retail segment.
North America was the largest regional market for indoor LBS and was estimated at USD 749.0 million in 2018. The region is home to key industry players operating in the market that have pioneered development of location-based service technologies for various applications. Moreover, these companies are very aggressive when they come to service innovation, as a result of which, the application portfolio of indoor LBS continues to expand.
Asia Pacific is poised to be the fastest growing region during the forecast period. Growing penetration of retail companies in the region is likely to augment the regional market. Furthermore, infrastructural development, such as commercial offices, townships, and shopping malls, in the region is offering lucrative opportunities for implementation of location-based services.
Key players in the industry include Apple Inc.; Cisco Systems Inc.; GloPos Technologies; Google Inc.; HERE Holding Corporation; Inside Secure Corporation; IndoorAtlas Ltd; Micello, Inc.; Microsoft Corporation; Ruckus Wireless, Inc.; Navizon Inc.; Qualcomm Inc.; Shopkick, Inc.; YOOSE Pte. Ltd.; and Sprooki Pte Ltd.
Prominent players are making investments in opening new stores to expand offerings across the globe. For instance, in March 2017, Apple Inc. expanded its sales operations by establishing new stores in Miami, Cologne, and Nanjing. With expansion of its sales in these regions, the company aimed at increasing the usage of mobile and location-based services.
Besides this, market players are emphasizing on collaborating with companies to offer innovative LBS services to consumers. For instance, in June 2016, Cisco Systems, Inc. partnered with Rockwell Automation, Inc. to introduce location-based services in its wireless product-access points, which can be used in industrial and indoor locations for tracking people, assets, and products.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, China, India, Japan, Brazil, Mexico, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (U.A.E.)
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analyst working days)
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global indoor LBS market report based on products, technology, applications, end use, and regions.
Product Scope (Revenue, USD Million, 2014 - 2025)
Analytics and Insights
Location and Alerts
Location-based Advertising Services
Secure Transactions and Redemptions
Technology Scope (Revenue, USD Million, 2014 - 2025)
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 Scope (Revenue, USD Million, 2014 - 2025)
End-use Scope (Revenue, USD Million, 2014 - 2025)
Aerospace and Defense
IT and Telecommunication
Energy and Power
Transportation & Logistics
Regional Scope (Revenue, USD Million, 2014 - 2025)
United Arab Emirates (U.A.E.)
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