Press release
Location Data As A Service Market Poised for Robust Growth, Projected to Hit $5.87 Billion by 2029
How Much Is the Location Data As A Service Market Expected to Expand by 2025?The market valuation for location data provision continues an aggressive upward trajectory, projected to swell from its 2024 figure of $2.34 billion to $2.82 billion by 2025, reflecting a brisk Compound Annual Growth Rate (CAGR) of 20.6%. This pronounced expansion documented across the past period stems from numerous factors, including the wider acceptance of Global Positioning System (GPS) technology and location-aware applications, a higher prevalence of mobile hardware, escalating requirements for immediate data insights, the burgeoning logistics and transit industries, initial incorporation with the Internet of Things (IoT) frameworks, and the ongoing development associated with urban expansion and intelligent city initiatives.
How Will the Location Data As A Service Market Size Change and Expand by 2029?
Anticipating substantial expansion, the market encompassing location data as a service is projected to achieve a valuation of $5.88 billion by the year 2029, reflecting a robust compound annual growth rate of 20.2% over the coming years. This surge throughout the projection timeframe is fundamentally driven by several factors: the escalating requirement for timely location intelligence, the wider uptake of cloud-hosted functionalities, a pronounced need to enhance operational streamlining, the broader rollout of smart urban projects, and the growing focus on perfecting supply chain methodologies. Key shifts characterizing this forecast span technological progress within geospatial analysis, novel developments in forecasting location-based insights, progress in incorporating artificial intelligence and machine learning, ongoing investigation into mobility resolutions, greater utilization of geofencing and navigational aids, alongside improvements in handling spatial datasets.
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What Are the Principal Drivers Behind the Location Data As A Service Market's Expansion?
Anticipated expansion in the uptake of 5G infrastructure is projected to be a significant catalyst for the advancement of the location data as a service sector in the near future. This next-generation mobile technology furnishes superior data transmission speeds, remarkably reduced lag times, and greater bandwidth capable of sustaining sophisticated applications spanning immersive gaming environments to the vast ecosystem of the Internet of Things. The growing momentum behind 5G deployment stems from a heightened requirement for prompt, responsive connectivity essential for running digital services that demand immediacy. In the context of location data services, 5G integration bolsters capabilities by ensuring extremely rapid, minimally delayed connections, leading to location monitoring that is both more precise and quicker to update, while simultaneously facilitating smooth incorporation of various IoT gadgets and sensors, thereby elevating location-based intelligence and unlocking sophisticated uses across asset oversight, urban planning, and supply chain operations. To illustrate this trend, in December 2023, the UK regulatory body, the Office of Communications (Ofcom), reported that the percentage of UK geography with outdoor 5G coverage from at least one mobile provider climbed to a range of 85 to 93 percent, marking an improvement over the 67 to 78 percent coverage documented the previous year in 2022. Consequently, the increasing prevalence of 5G networks serves as a major impetus for the expansion within the location data as a service market.
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What Emerging Patterns and Trends Are Fueling the Location Data As A Service Market Growth?
Leading corporations within the location data as a service sector are directing their efforts toward pioneering sophisticated offerings, notably encompassing smooth tracking of devices both inside and outside premises, thereby facilitating exceptionally precise, instantaneous, and unbroken location insights throughout intricate settings via incorporation of sophisticated sensor merging and AI-powered cartography methods. Uninterrupted device location monitoring across both internal and external settings describes the capability to follow a device or asset's whereabouts consistently without interruption. Illustratively, in the first month of 2023, the Netherlands-headquartered location technology firm HERE Technologies formed an alliance with the United States-based cloud computing giant Amazon Web Services (AWS) with the express purpose of augmenting location-dependent features available to software developers. This joint venture is centered on refining the latitude and longitude determination both indoors and outdoors, permitting granular surveillance and administration of Internet of Things hardware at an extensive scale. The partnership achieves this by unifying HERE's high-fidelity positioning expertise with AWS's robust cloud backbone and IoT platforms, empowering enterprises to construct applications capable of charting the path of tangible items and directing personnel with accuracy down to the meter as they transition from open areas, such as company yards, into multifaceted internal structures like logistical hubs and aviation terminals, all while preserving the integrity of spatial awareness.
Which Segment Categories Are Expected to Dominate the Location Data As A Service Market by 2029?
The location data as a service market covered in this report is segmented -
1) By Component: Platform, Services
2) By Deployment Mode: Cloud, On-Premises
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Mapping and Navigation, Advertising and Marketing, Asset Tracking, Risk Management, Other Applications
5) By End-User: Retail, Transportation and Logistics, Banking, Financial Services, And Insurance, Healthcare, Government, Other End-Users
Subsegments:
1) By Platform Services: Mapping Services, Data Analytics Services, Visualization Services, Integration Services, Security Services
2) By Data Services: Location Data Collection, Location Data Processing, Location Data Management, Location Data Enrichment, Location Data Delivery
Who Are the Prominent Market Players Shaping the Future of the Location Data As A Service Market?
Major companies operating in the location data as a service market are Google LLC; Microsoft Corporation; Alibaba Group Holding Limited; Tencent Holdings Limited; International Business Machines Corporation; Oracle Corporation; Uber Media Inc.; CARTO DB Inc.; Zebra Technologies Corporation; Trimble Inc.; Precisely Inc.; Yelp Inc.; Environmental Systems Research Institute Inc.; HERE Technologies; TomTom N.V.; Telenav Inc.; Mapbox Inc.; Foursquare Labs Inc.; MapQuest Inc.; SafeGraph Inc.; OpenStreetMap Foundation
What Are the Key Regional Hubs Shaping the Future of the Location Data As A Service Market?
North America was the largest region in the location data as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the location data as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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