Location Based Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[228+ Pages Report] According to Facts and Factors, the global location-based marketing services market size was valued at USD 46.35 billion in 2022 and is predicted to surpass USD 232.56 billion by the end of 2030. The global location-based marketing services market is expected to grow by a CAGR of 22.16%.

The research report includes location-based marketing services industry trends, growth factors, pricing analysis, and restraints of the location-based marketing services industry. Furthermore, it also explores the geographical and competitive landscape of the marketplace.

Location Based Marketing Services Market: Overview

Location-based marketing services use geographical insights to deliver personalization and targeted marketing services to consumers. These services are based on the physical location of the consumers. These services leverage the GPS capabilities of electronic devices to offer promotions, discounts, and content to users when they are in close proximity to a particular location. It includes various services like proximity marketing, geotargeting, geofencing, user consent and privacy, integrated marketing campaigns, and beacon technology.

Key Insights

• As per the analysis shared by our research analyst, the global location-based marketing services market size is estimated to grow annually at a CAGR of around 22.16% over the forecast period (2023-2030).
• In terms of revenue, the global location-based marketing services market size was valued at around USD 46.35 billion in 2022 and is projected to reach USD 232.56 billion by 2030.
• Emergence of proximity marketing technology is expected to positively influence the growth of the global location-based marketing services market.
• Based on the industry verticals, the technology & media segment accounts for the largest share of the global market.
• Based on the promotion types, the search result segment is likely to register the highest growth in the global market.
• Based on location types, the physical location segment is likely to register the highest growth rate in the global market.
• Based on the content outlook, the multimedia content segment accounts for the largest share of the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Location Based Marketing Services Market: Growth Drivers

• Emergence of proximity marketing technology is likely to boost the growth of the global market.

The emergence of proximity technologies like near-field communication and beacons are helping businesses to interact with customers when in close proximity to physical locations, and therefore this development is likely to significantly boost the growth of the global location-based marketing services market in the forthcoming years.

Also, social media helps users to pin the location while adding content to their accounts, which further enables businesses to easily target consumers based on their locations and interests.

Furthermore, location-based marketing is highly capitalizing on real-time events like sporting events, concerts, and local festivals to promote the ideal offers to the customers. For instance, Ericsson launched its new cloud connect service in September 2021 to ease cellular connectivity with the public IoT endpoints for enterprises.

Location Based Marketing Services Market: Restraints

Data security and compliance are likely to restrain the growth of the global market.

Businesses stick to strict data security and compliance regulations while storing, collecting, and using location data. However, failure to follow any of these regulations can lead to penalties and other financial consequences.

Also, consumers are becoming increasingly aware of privacy rights which is further likely to hamper the growth of the market in the forthcoming years. Increasing awareness regarding unauthorized access and misuse of personal information are some of the major factors slowing down the growth of the location-based marketing services industry.

Location Based Marketing Services Market: Opportunities

• Increasing adoption by the retail and hospitality industry is likely to offer lucrative growth opportunities in the global market.

Hospitality businesses and retailers are using location-based marketing services to offer personalized recommendations, loyalty rewards, and special deals to customers on the basis of their physical locations, which is likely to widen the scope of the global location-based marketing services market.

The increasing use of smartphones with GPS capabilities has created a robust customer base that can be targeted with the services is a major reason for the growth of the industry. The advancements in location tracking and GPS technology is also major development in the market, which help increase the accuracy in determining people's location, thereby offering more precise and effective targeting.

Location Based Marketing Services Market: Challenges

• Opt-in features are a big challenge in the global market.

Users are asked to opt-in for location tracking on the smartphone and other electronic devices, which is a big barrier in the global location-based marketing services industry. People are resistant to sharing their location due to privacy reasons which is a big challenge in the industry.

Location Based Marketing Services Market: Segmentation

The global location-based marketing services market can be segmented into industry verticals, promotion types, location types, content outlook, and regions.

By industrial verticals, the market can be segmented into automotive, transportation & logistics, technology & media, education, BFSI, healthcare, hospitality, retail, and others. The technology & media segment accounts for the largest share of the global location-based marketing services market.

The major factor contributing to the growth of the segment is the fact that location-based marketing depends entirely on technology platforms and social media channels to connect with consumers and deliver targeted messages. Moreover, the sector is widely utilized because it encompasses various aspects like social media, online advertising platforms, geological technologies, and mobile apps.

By promotion types, the market can be segmented into voice calling, social media content, email & message, search result, video, banner display, and other promotions. The search result segment is likely to register the highest growth in the location-based marketing services industry during the forecast period. The high growth rate is due to the increasing reliance of people on online directories and search engines for finding local services, products, and businesses.

As a result, people are increasingly looking for search engine optimization services to ensure that businesses appear on the search result for the targeted keyboards. The segment is growing largely because of the increasingly local SEO, mobile search, maps, voice search, consumer behavior, hyperlocal targeting, etc.

By location type, the market can be segmented into location of interest and physical location. The physical location segment is likely to register the highest growth rate during the forecast period. Local businesses are flourishing at a high rate. They prefer to advertise locally because of their reach. However, the location of interest segment is also expected to grow steadily in the coming years.

By content outlook, the market can be segmented into text and multimedia content. The multimedia content segment is likely to grow largely because of the increasing efforts by advertisers to increase the visual appeal. Multimedia visuals are more engaging when compared to other alternatives.

The era is dominated by social media platforms like Instagram, Twitter, and, therefore, the segment is expected to rule the market in the forthcoming years. However, the text segment is also growing steadily because of the wide usage of text media by the larger audience.

For instance, Google Maps in June 2020 launched a beta version of Cloud-based maps styling advantage, which is a package of completely new capabilities to deploy, manage, and customize maps from the Google Cloud console.

Report Scope

Location Based Marketing Services Market: Regional Analysis

• North America to dominate the global market during the forecast period.

North America is expected to grow expediently in the global location-based marketing services market with a high CAGR during the forecast period. The region has a robust technology infrastructure with high-speed internet access. Additionally, the increasing penetration of smartphones is creating a conducive environment for the growth of location-based marketing services in the region.

Additionally, the region is adopting new technology trends that characterize modern-day location-based marketing services. The strong economy of the region further supports business investments and consumer spending in advertising and marketing services. The region has a well-developed digital advertising ecosystem and thereby aligns with location-based marketing services to offer opportunities for accurate targeting based on geographical data.

Asia Pacific is expected to grow steadily in the forthcoming years due to the increasing urbanization and population. Additionally, the e-commerce and online shopping growth in the region has significantly leveraged the opportunities for location-based marketing services in the region. Also, the wide adoption of the digital payment system is also paving a positive growth trajectory for the regional market.

Asia Pacific is witnessing the rise of super apps that offer various location-based services on a single platform. These apps offer tailored experiences and further drive growth to the regional market. For instance, Atos and IBM partnered and developed a robust infrastructure for the defense ministry of the Dutch. The framework supports advanced technologies and safeguards the associated system.

Location Based Marketing Services Market: Competitive Analysis

The key players in the global location-based marketing services market include:

• Telenity 
• Proximus Mobility LLC. 
• Near Pte Ltd. 
• IBM Corporation 
• GroundTruth 
• Google Inc. 
• Foursquare 
• Facebook Inc. 
• Edmodo 
• AdMoove 
• Radar 
• Pulsate 
• Shopkick 
• Airship 
• Localytics 
• Bluedot 
• Swirl Networks 
• Gimbal 
• Uberall 
• PlaceIQ 
• Google

For instance, Oracle and BT collaborated to enhance their network resources to test and execute the 5G services smoothly.

The global location-based marketing services market is segmented as follows:

By Industry Verticals Segment Analysis

• Automotive
• Transportation & Logistics
• Technology & Media
• Education
• BFSI
• Healthcare
• Hospitality
• Retail
• Others

By Promotion Types Segment Analysis

• Voice Calling
• Social Media Content
• Email & Message
• Search Result
• Video
• Banner Display
• Other Promotions

By Location Types Segment Analysis

• Location Of Interest
• Physical Location

By Content Outlook Segment Analysis

• Text Content
• Multimedia Content

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America