Location Based Services Market to Reach $235,062.8 Million by 2034 Globally, at 12.6% CAGR: Allied Market Research

The market is experiencing rapid growth due to rise in the adoption of mobile commerce & social media & increase in advancements in GPS, GIS, & IoT technologies

WILMINGTON, DE, UNITED STATES, June 18, 2025 /EINPresswire.com/ -- Allied Market Research published a report titled, Location Based Services Market - Global Opportunity Analysis and Industry Forecast, 2024-2034, which was valued at $70,357.3 million in 2024. The market is expected to grow at a CAGR of 12.6% from 2025 to 2034, reaching $235,062.8 million by 2034. Key factors fueling this growth include rise in the adoption of mobile commerce & social media, advancements in GPS, GIS, and IoT technologies, and the proliferation of smartphones & mobile devices to enable real-time connectivity and location-based services.

Report Overview:

Rise in the adoption of mobile commerce & social media and increase in advancements in GPS, GIS, and IoT technologies has driven the demand for location-based services and real-time analytics, prompting businesses to enhance customer engagement strategies and optimize operations. Additionally, the widespread use of smartphones and mobile devices is driving the growth of mobile applications and connected ecosystems, further accelerating overall market expansion.

However, the high cost of infrastructure deployment and operational challenges pose significant restraints. Conversely, the integration with Augmented Reality (AR) and AI in location-based services presents significant opportunities for market players.

Key Segmentation Overview:

The location based services market is segmented on the basis of component, technology, application, industry vertical, and region.

• By Component: Software and Services.
• By Technology: GPS, Cell ID, Wi-Fi, and Others
• By Application: Mapping and Navigation, Business Intelligence and Analytics, Fleet Management, Location-based Advertising, Social Networking and Entertainment, Asset Tracking, and Others.
• By Industry Vertical: Transportation and Logistics, Manufacturing, Government and Public Utilities, Retail, Healthcare and Life Sciences, Media and Entertainment, IT and Telecom, BFSI, Hospitality, and Others.
• By Region:
North America (U.S., and Canada)
Europe (Germany, UK, France, Italy, Spain, Rest of Europe)
Asia-Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
LAMEA (Brazil, South Africa, UAE, Saudi Arabia, Rest of LAMEA)

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Market Highlights:

• By component, the services segment dominated the market in 2024 and is expected to continue leading due to proliferation of IoT devices generating vast location data, growth of e-commerce, integration of AR, VR, and AI, and increase in the use of real-time location systems across various industries.

• By technology, the GPS segment witnessed significant growth due to growing demand for indoor navigation solutions, integration with IoT, AI, and 5G enhancing real-time data processing, and integration of augmented reality (AR) & virtual reality (VR) technologies to create immersive experiences in sectors such as gaming and retail.

• By application, location-based advertising is expected to register the highest growth, due to its adoption by retailers and e-commerce platforms and its role in delivering hyper-targeted content through real-time location data and consumer behavior insights.

• By industry veritcal, the retail segment is expected to witness the fastest growth due to the rapid digital transformation, increasing demand for personalized customer experiences, and the advancements in GPS and Bluetooth technology.

Factors Affecting Market Growth & Opportunities:

The rising adoption of mobile commerce & social media for personalized marketing, customer engagement, and on-the-go transactions has propelled the growth of the location based services market. Factors such as increase in advancements in GPS, GIS, and IoT technologies, enabling precise real-time tracking, improved navigation, and enhanced data analytics along with the widespread use of smartphones & mobile devices enabling seamless access to location-based services are driving the market forward.

• Growth in Wearable Devices: The use of wearables such as smartwatches and fitness trackers enables real-time applications in health monitoring, fitness, and personal safety.

• Innovations in Location Based Services: The integration of AR and location based services in retail and tourism enables virtual try-ons, interactive experiences, and real-time, location-specific promotions that boost customer engagement.

However, challenges such as the high cost of infrastructure deployment and operational challenges remain concerns for industry players. companies are focusing on enhancing cost-efficiency, scalability, and system integration to ensure reliable and sustainable location-based service solutions.

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Regulatory Landscape & Compliance:

The location-based services (LBS) market operates within a complex regulatory landscape, shaped by various regional and international frameworks. These regulations are designed to ensure that users’ location data is collected, processed, and stored securely while protecting individual privacy rights. Regulations such as the General Data Protection Regulation (GDPR) in Europe, the California Consumer Privacy Act (CCPA), and other regional privacy laws impose strict requirements on how location data is collected, stored, and used. Compliance mandates transparency, user consent, and data minimization to protect individuals’ privacy rights, ensuring the ethical and sustainable growth of the location-based services market.

Recent government policies aim to ensure greater accessibility and affordability of location-based services for consumers by offering regulatory support, incentives, and frameworks that promote innovation while safeguarding privacy and security.

Technological Innovations & Future Trends:

• The integration with IoT ecosystem enables seamless real-time tracking, monitoring, and management of connected devices across various industries such as smart homes, smart cities, logistics, healthcare, and industrial automation.

• LBS in autonomous vehicles provides real-time traffic data and enhanced mapping to ensure safe and efficient navigation.

• Hyperlocal targeting in advertising leverages real-time, precise location data to deliver micro-targeted ads and offers, making brand messaging more relevant and impactful.

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Regional Insights:

Asia-Pacific dominated the location based services market owing to increase in the adoption of smartphones in countries such as China and India, driven by the rise in demand for LBS applications, including navigation, social networking, and location-based advertising. In addition, the government investments in smart city projects, which utilize LBS for traffic management, emergency services, and urban planning are expected to fuel the growth of the market during the forecast period. China leads the market in this region, driven by a large population base, rapid urbanization, strong government support for digital infrastructure, and the widespread integration of LBS in sectors such as transportation, e-commerce, and public safety.

For instance, in May 2024, Amazon Web Services (AWS) partnered with NavInfo to develop localized solutions for the automotive industry. Combining AWS’s cloud capabilities with NavInfo’s expertise in geographic data and smart mobility, the collaboration aims to accelerate innovation in intelligent connected vehicles, smart driving, and data-driven automotive technologies.

LAMEA is expected to witness rapid growth during the forecast period, driven by factors such as rapid urbanization and the development of smart cities leading to increasing the demand for real-time navigation, asset tracking, and location-aware applications across transportation, retail, and public safety sectors. In addition, the increase in use of LBS applications in the tourism industry provides tourists with location-specific information, personalized recommendations, and interactive experiences, enhancing overall visitor satisfaction. Latin America stands out as a dominant player in the location based services industry, due to the growing penetration of smartphones, expansion of mobile internet connectivity, increased investment in digital transformation across industries, and rising adoption of LBS solutions in sectors such as transportation, logistics, tourism, and retail.

For instance, in February 2025, Foxconn signed an MoU with the State of Sonora, Mexico, to expand its Smart City platform beyond Taiwan for the first time. The partnership will focus on smart transportation, public safety, and port management, leveraging Foxconn’s AI and digital expertise. It also opens doors for future collaboration in electric vehicles, batteries, and smart mobility under Mexico’s Olinia project.

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Key Players:

Major players in the location based services market include AT&T Inc., Microsoft Corporation, Google LLC, IBM Corporation, Apple, Inc., Qualcomm Technologies, Inc., Oracle Corporation, ALE International, HERE, ROHDE & SCHWARZ GmbH & Co. KG, Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Bharti Airtel Limited, Esri, Intellias, and Foursquare. These companies are focusing on expanding their service offerings, strategic partnerships, and enhancing digital accessibility, customer outreach, and financial inclusion in the location based services industry.

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Key Strategies Adopted by Competitors:

• In March 2025, Apple launched a new app called "Surveyor" designed to improve the accuracy and detail of Apple Maps by collecting real-world mapping data. The app focuses on gathering information such as street signs, traffic signals, and roadside details to ensure Apple Maps remains precise and up-to-date. Unlike standard consumer apps, Surveyor is intended for partner companies tasked with mapping assignments. Users are prompted to use the Premise app to complete various tasks, such as photographing specific locations and reporting local details.

• In November 2024, Cisco Systems, Inc. partnered with NTT DATA to empower the global mobile workforce with simplified access to 5G connectivity. By leveraging Cisco's eSIM technology and NTT DATA's Transatel network, the collaboration enhances the ability to track and manage assets and personnel in real-time across 180 countries. This integration supports various LBS applications, such as asset tracking, location-based analytics, and secure mobile branch services, making it a significant development in the LBS market.

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