Indoor Location-Based Services (LBS) Market size is poised to grow at an appreciable rate from 2022 to 2028. The growth can be ascribed to increasing security concerns which are driving the adoption of LBS services for monitoring suspicious activities in public spaces. These services are based on the location of a mobile user which is determined by the geographical location of the device. LBS applications offer information and services that are highly relevant to the user at a particular location.
The penetration of smartphones and internet services across the globe is expected to accelerate the industry growth over the coming years. Various emerging economies have recorded a considerable rise in smartphone usage in recent years which will further enhance the industry landscape.
With regards to application, the indoor LBS market is projected to witness notable growth from the retail segment as the brick-and-mortar retailers are seeking more ways of offering an enhanced in-store experience to their customers. Location-based services not only offer incentives for consumers to enter physical retail stores but also help in streamlining their experience while they are in the store. Retailers are now incorporating various technologies to help customers navigate through the store by providing relevant information. For instance, the advancements in Augmented Reality (AR) driven by major tech companies like Google, Apple, Microsoft, etc. have made indoor navigation a preferable possibility for various retailers.
On the regional terrain, indoor location-based service market is expected to exhibit a significant expansion across North America through 2028. This can be largely credited to the increasing adoption of maps and location-based services for navigation in the region. Besides, the rising penetration of smartphones coupled with the increasing internet infrastructure development activities is anticipated to support market growth in the future. Citing an instance, in 2021, the U.S. government announced to invest USD 100 billion towards the development of future-proof broadband in light of the growing necessity of high-speed internet connection in the country.
The market is expected to grow considerably across Asia Pacific over the forthcoming years on account of the elevating demand for indoor LBS services. This is attributed to the increasing infrastructure development activities in the commercial sector across the region.
The major market players operating in indoor LBS market include Google LLC, Cisco Systems, Inc., Qualcomm, IBM Corporation, Oracle Corporation, Microsoft Corporation, Apple Inc., Ericsson, TomTom N.V., Zebra, Ubisense, Foursquare, Pitney Bowes, Baidu, CenTrak, Galigeo, HERE Technologies (owned by Audi, BMW, and Daimler), Teldio, Navigine, infsoft GmbH, Living Map, etc.
These companies are largely focusing on the development of innovative solutions for various end-use sectors to bolster their foothold in the market.
To illustrate, in 2020, CenTrak announced to have introduced its end-to-end sensing, locating, and security services to the healthcare industry. According to the company, the new solution has been designed to improve the user experience and allow the real-time collection of data to drive automated workflows.
The global outbreak of COVID-19 pandemic has made a slight impact on indoor location-based services market space due to the lockdown restrictions leading to a temporary closure of various retail outlets, offices, commercial spaces, etc. However, the healthcare and government sectors largely used the services to track the citizens affected by the virus and implement smart quarantining. Also, with the gradual lifting of restrictions and restoration of business operations, the market is expected to grow steadily over the foreseeable future.