Location Intelligence and Location Analytics Market Overview
The global market for Location Intelligence and Location Analytics is estimated to grow from $10.6 billion in 2021 to $17.6 billion by 2027 at a robust CAGR of 11.4% during the forecast period 2022-2027. Location intelligence and location analytics is the combination of geo-spatial data (geoanalytics) and business intelligence is combined with cartographic tools for better understanding of the location-based relationships and geographical information system context that lie within data. The term “Location” indicates the tagging and storing raw data with their specific location (also include the time dimension in some instances). “Intelligence” defines the process of analyzing, accessing process and synthesizing data, converting this into intelligence and then converting into applicable business actions using thematic mapping and rising utilization of internet of things. Advanced Location Intelligence software is designed to access and bond all the significant BI and operational data stores (CRM, SCM, ERP, etc.) which is combined with rich spatial and cartographic abilities. According to a survey by 360Suite, the global BI adoption rate across all organizations is 26%. At a more granular level, based on the company size, survey results showed that those with an adoption rate of more than 80% is higher in organizations with more than 5,000 employees. Location intelligence and location analytics presents significant opportunities in maximizing the value of business intelligence (BI) and every day decision-making process of the Organizations/ Companies. It is the combination of spatial analysis and existing data from business intelligence applications, and enables the ability to visualize various metrics on a map. Both public and private organizations are grasping business cases for location intelligence. It can be applied on both dispositive and analytic issues and can also be embedded operatively in real time in business processes.
Report Coverage
The report: “Location Intelligence and Location Analytics Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Location Intelligence and Location Analytics Market Report.
By Organization Size – Small Enterprises, Medium Enterprises, Large Enterprises
By Service – Consulting Services, System Integration Services, Managed Services, Others
By Type – Location Intelligence, Location Analytics
By Application – Sales and Operational Profitability Management, Workforce Management, Facilities Management, Tracking and Route Monitoring, Customer and Marketing Management, Risk Assessment/Situational Awareness, Others
By End Use Industry – Consumer, BFSI, Travel, Real Estate, Transportation and Logistics, Telecommunication, Retail, Manufacturing and Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Australia and Others), South America (Brazil, Argentina and others) and RoW (Middle East and Africa).
Key Takeaways
- North America dominated the Location Intelligence and Location Analytics market owing to high adoption of cloud technologies in industries combined with stringent regulations in 2021.
- The Location Analytics market is a consolidated market dominated by a few players accounting for major market share due to large customer base and wide distribution network. These players command significant margins for their products.
- Location Analytics typically represent a rising rate of adoption and there appears to be desire for customers to integrate Location Analytics in business intelligence technology.
Location Intelligence and Location Analytics Market Segment Analysis- By Industry
By industry, transportation & logistics segment held the major revenue share around 32% in 2021 followed by the manufacturing and retail segment with 14% revenue share each. This technology shows an impact on military applications to identify the exact location of troops and enemy movements on a map which allows for enriched decisions and presents tactical advantages. Location intelligence and location analytics is showing a great impact on Chain Retail businesses to rise their sales and increase customer detention through past spending habits of people from various geographical locations. The better product distribution and proper targeted advertisements help the retailers to increase their sales. Location analytics enhances the data and systems to gain insight accurately and more quickly. Location Intelligence and Location Analytics market is segmented based on end user industry into retail and consumer goods, banking, financial services & insurance, travel, real estate, transportation & logistics, manufacturing and others
Location Intelligence and Location Analytics Market Segment Analysis- By Type
Location analytics is projected to be the highest growing segment, growing at a CAGR of 14.9% during 2022-2027 and reach $7948.8m by 2027. Location analytics provide consumers with a wide variety of possible solutions, not limited to a particular agency or entity. In making operational decisions, most organizations use geographical information to interpret, visualize, and understand location-based information. Location analytics also incorporates consumer profile data from the past and their interests to understand diverse behaviors and habits globally. The demand for location analytics is driven by growth in the retail sector, rising use of GPS systems, and technical developments in the field of GIS technology.
Location Intelligence and Location Analytics Market Segment Analysis- By Geography
In 2021, North America contributed the maximum revenue of $3763.3m followed by Europe and APAC in LI & LA market. APAC is forecasted to be the fastest growing market with a CAGR of 14.1% during 2022 to 2027 owing to rising awareness of LI & LA in APAC region. The growth of big data and real-time analytics is another key factor stimulating the growth of location intelligence and location analytics market whereas the lack of skilled employees is hindering the market growth. Numerous location intelligence and analytics solutions are being developed for the retail industry in the country keeping the requirements under consideration in 2021. The U.S comprises of highly integrated supply chain network utilizing air, water, road and rail transport to effectively serve various stake holders of any industry. Location intelligence and analytics is assisting these industries in tracking various freights.
Location Intelligence and Location Analytics Market Drivers
Rising Mobile and Cloud Location Analytics
The growing location analytics market based on smartphone technology for advertising purposes in particular will result in fast growth of the market. The growth of mobile location analytics in the retail sphere has led to a major demand for this technology. The ease of integration and quicker access for consumers through this technology will drive the market. Commercial business makes use of smart phones that increase productivity, mobility and safety, and enable employees to advance customer service in order to maintain good communication with customers and suppliers. This further enables employees to work efficiently and remotely. In 2019, Appify launched a campaign to get small businesses investing in their mobile presence. Similarly, Major Companies such as IBM, Microsoft and others look to invest heavily to attract SMEs to develop applications. 31% of enterprises see the public cloud as their top priority. 9% of enterprises prioritize an on-premises private cloud, while 6% will strive for a hosted private cloud. Hence these advancements are analyzed to drive the market in the forecast period 2022-2027. Cloud deployment is growing rapidly owing to its operational flexibility and real-time deployment ease to companies. It also offers numerous benefits, including reduced operational costs, simple deployment process, and higher scalability in terms of connected resources.
Need for lower operational and administration expenditure
Big data analysis utilizes large data to uncover correlations and other insights. As of 2021, there are more than 76 terabytes of information collected by the Library Of Congress in the U.S. This growth of big data has led to a significant rise in the business intelligence market, thereby leading to growth of location analytics. Big data has improved the perspective of the consumer for the better. Location intelligence can help to simplify mapping, ordering, assistance, and queue management. Understanding the spatial position of an individual has helped to enhance visitor experience in a wide variety of industries. Continued presence of leading companies such as Cisco Systems, SAP, IBM and Oracle Corporation in the APAC market has resulted in increased awareness regarding these services. The growing applications in retail and transportation for location intelligence have also resulted in increased awareness. A number of companies have integrated location analytics into their business analytics portfolio. This rising integration has led to increased adoption as the awareness regarding the technology rises. The growth of real time analytics market has led to increased integration of RTLS (Real Time Location Systems) into the location analytics solutions to monitor the data continuously. The improved and quicker decision making offered by this technology will drive the adoption.
Location Intelligence and Location Analytics Market Challenges
High Initial Cost of Integration
In terms of the various advantages provided by location analytics, the positive return on investment remains the biggest concern for different businesses and serves as a significant limiting factor for the overall growth of the demand for location analytics. Location analytics is in its infancy stage, but for businesses that move from conventional BI to location analytics, the initial cost of investment is high. In order to ensure smooth functioning, businesses will need to employ competent and skilled technical personnel. The perception of not achieving the anticipated return on investment could therefore restrict the overall growth of the global market for location intelligence and analytics. Even Entry Level LI tools cost $200-$500 per user per year with more robust models such as ArcGIS going to $1000-$1500 per user per year. This subscription value builds up, especially for SMEs.
Location Intelligence and Location Analytics Market Landscape
Acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Location Intelligence and Location Analytics market. Location Intelligence and Location Analytics top 10 companies include
- Tibco Software
- SAP
- Microsoft
- IBM
- Pitney Bowes
- Oracle
- Caliper
- Galigeo
- SAS Institute
- Near
Recent Developments
- In November 2020, Near company announced that it was acquiring Paris-based location intelligence platform, Teemo. The strategic acquisition of Teemo will enable Near to offer more advanced data intelligence products, including audience curation and data-driven marketing capabilities in the European market.
- In January 2021, Near announced that it had acquired Uber Media to enhance its portfolio of data intelligence products for its customers in the U.S. market.
- In February 2021, PlaceIQ Acquired Skyhook’s Location Intelligence Line. Skyhook will add value to PlaceIQ’s existing data stronghold
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