Location analytics, also known as geo-analytics, is a tool that adds a layer of geographical data to an organization’s assets, infrastructures, transportation, and environment in order to predict consumer behavior and purchasing patterns. It typically relies on data collected through cameras, sensors, mobile devices, global positioning systems (GPS), social media channels, and other means. Compared to traditional methods, such as business intelligence (BI) data, location analytics is relatively simple for non-experts to understand. It is broadly used in various industries, including healthcare, media and entertainment, banking, financial services and insurance (BFSI), and so on.
The global location analytics market size in 2021 was $14.5 billion, and by 2030 it is predicted to reach $55.14 billion with a CAGR of 16% during the forecast period. North America held the largest market regionally, with a share of over 40% in 2020.
The increased investment in the Internet of Things (IoT) and the increasing adoption of smart devices and network services are driving the market for location intelligence, enabling smarter applications and improved connectivity.
During the COVID-19 epidemic, location analytics has become increasingly important. Government officials are using geospatial data and geographic intelligence worldwide to analyze and control the spread of coronavirus in high-risk containment zones. The dissemination of COVID-19 visualization through geospatially enabled interactive dashboards has had a positive impact on industry growth.
The availability of massive amounts of fragmented location-based data across all sectors has caused issues with data correlation and analysis using standard BI tools. Spatial data and analysis are thought to be critical for businesses to identify shifting business trends and difficulties across regions. This information is propelling the market forward. The spatial data assists clients in resolving space assignment-related problems, as well as providing data for audits, design reviews, and other space-related initiatives. These characteristics boost the utilization of geographical data in a variety of industries. Location analytics solutions help businesses process massive amounts of geographical data and give real-time analysis of changing customer needs, business trends, regulations and guidelines.
Lack of awareness, operational challenges, and data privacy concerns are expected to restrict the market expansion. Consumers are skeptical about technologies that could expose them to personal information and safety issues. Manufacturers and service providers must consider adequate security measures to ensure the protection and privacy of client data.
In 2021, the sales and marketing optimization segment ruled the overall location analytics market with a share of more than 20.10%. Location intelligence systems simplify sales and marketing processes by gathering relevant data for marketing efforts and forecasting outcomes. Geospatial analytics and data are used by sales professionals to study shopper behaviour, boost on-field conversions, and locate new prospects.
In 2021, transportation and logistics had the highest revenue share of 19.13% of the whole market. Understanding the distance and drive times between places with exact geographic coordinates and the routable road network is aided by location information. It also includes information on road closures and actual daily closures at the site. It aids in the resolution of retail issues such as store sales forecasting, drive time and distance profiling, network optimization and scenario modeling, site selection planning, and franchise region evaluation and overlap analysis.
The software sector recorded a 35% market share for location analytics in 2020, and it is anticipated that it will hold this position for the foreseeable future. Location intelligence software enables organizations of all sizes to gain a competitive edge through the use of enterprise mapping tools. However, because location analytics software is widely used by end users, the process will run well.
In 2021, North America held a significant position in the market, with a revenue share of more than 30%, and is expected to grow significantly. Smartphone penetration in the region reached approximately 80% in 2021 and is constantly increasing. Furthermore, the strong presence of leading providers of IoT technologies and location intelligence is projected to drive market expansion in North America. The European market is also predicted to increase significantly, owing to rapid advancements in business intelligence analytics and geographic information systems technology.
The Asia Pacific area is predicted to develop at the fastest CAGR during the forecast period, owing to an increase in smartphone users, advancements in networking technology, an increase in service providers, and the emergence of social media.
Key players analysis
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