The Location-Based Services (LBS) and Real-Time Location Systems (RTLS) market is expected to grow at a rapid pace, owing to increase in various applications, such as portable Personal Digital Assistant (PDA)-based eCommerce, driverless cars, and location-based defense equipment. The other major opportunities for LBS and RTLS include navigation, local search, enterprise services, mobile advertisements, location-specific health information, tourism, consumer tracking, and other location-based business intelligence. Moreover, enhancement of connectivity technologies, supplemented by growing interest in personalized services based on users’ location information have boosted the LBS and RTLS market.
The Location-Based Services (LBS) and Real-Time Location Systems (RTLS) market size is expected to grow from USD 22.18 billion in 2018 to USD 68.85 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 25.4% during the forecast period. The major factors that are expected to drive the growth of the LBS and RTLS market include increasing use of latest technologies, higher adoption of LBS and RTLS technologies across many industry verticals, and growing demand for location-based mobile advertising.
The emergence of RTLS has further augmented the opportunity areas for LBS. Technologies that enable LBS such as Internet of Things (IoT) and smart wearable devices have played a significant role in enhancing the adoption of LBS and RTLS technologies in this Location based service Market. The major factors responsible for the upsurge of real-time location tracking solutions include optimization of resources through efficient asset tracking, increasing standardization, declining cost of RTLS hardware and software, technological advancements, escalating applications in numerous industry sectors ranging from healthcare to defense, and government support and funding.
The services segment is expected to grow at the highest CAGR during the forecast period
The service segment is expected to grow at the highest CAGR during the forecast period, owing to rise in need for consulting and advisory services and deployment and integration services. These services are essential for the successful implementation of LBS. The overall cost of the LBS installation depends on the complexity of the application and the type of technology used. It comprises hardware, software, and middleware, and services cost.
The deployment and integration services segment is expected to be the fastest-growing application in the LBS and RTLS market during the forecast period
The deployment and integration services segment is expected to hold the largest market size in the forecast period. Deployment and integration services take care of seamless integration of each location-based software in the existing system, regardless of the technology. System integration provides facilities and frameworks for integration of various platforms with third-party environments. This integration allows applications to run on other platforms and make indoor location-based solutions efficient and quick.