Location of Things Market

Market Overview:

The global location of things market size reached US$ 23.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 291.8 Billion by 2032, exhibiting a growth rate (CAGR) of 32.22% during 2024-2032. The penetration of the Internet of Things (IoT) across the globe, the increasing commercialization of location of things services, and the widespread adoption of cloud technology represent some of the key factors driving the market.

The concept of the location of things refers to the specific position or place where objects, entities, or phenomena are situated in space. It includes the spatial coordinates, physical address, or geographical reference that allows users to identify and describe the whereabouts of something. It locates resources, plans journeys, and interacts with the environment and allows to monitor and find items, get directions, discover new locations, and access location-specific information. Moreover, the concept of location extends beyond physical objects and encompasses abstract entities as well. The notion of location is multi-dimensional and can be described in terms of latitude, longitude, altitude, orientation, proximity, and even virtual or conceptual space.

The escalating adoption of the location of things majorly drives the global market. This can be supported by the widespread adoption of location-of-things services across businesses, and industries as it shapes the decision-making process of both businesses and consumers. As businesses strive to position themselves in areas where there is a high concentration of potential customers, this factor is playing a significant role in the uptake of the location selection process. Since easy access to transportation and infrastructure is crucial and numerous businesses are heavily investing in the deployment of efficient supply chains to deliver their products or services to customers, which is significantly supporting the adoption of location of things across the globe. Along with this, several businesses are inclining toward areas with favorable tax incentives, supportive regulatory environments, and business-friendly policies that are also positively influencing the overall market. Some of the other factors driving the market include rapid digitization and continual technological advancements.

Location of Things Market Trends/Drivers:

Growing Consumer Demand

Consumer demand is a significant market driver that influences the location of businesses and services. Companies often establish their operations in areas with a high concentration of target customers. Factors, such as population size, demographics, income levels, and consumer preferences, play a crucial role in determining the location of retail stores, restaurants, entertainment venues, and other consumer-oriented businesses, which are significantly supporting the market. In addition, the availability and quality of infrastructure and amenities influence the location decisions of businesses and individuals. Adequate transportation networks, including roads, railways, airports, reliable utilities, such as power, water, telecommunications, and access to healthcare facilities, educational institutions, and recreational spaces are crucial for attracting businesses, residents, and investments. Areas with well-developed infrastructure often have a competitive advantage in attracting economic activity, which is acting as another growth-inducing factor.

Increasing Focus on Profit Maximization

Efficient supply chain management is vital for businesses to minimize costs and meet customer demands while maximizing the profit level. The proximity to suppliers, distribution networks, transportation hubs, and logistical infrastructure can greatly impact the location of manufacturing facilities, distribution centers, and warehouses. Access to reliable transportation routes, ports, and airports also influencing the global trade and logistics hubs. Since the availability and cost of labor are essential in choosing the location for businesses, particularly in industries with high labor requirements, such as manufacturing, technology, and services. This is encouraging companies to seek regions with a skilled workforce, access to specialized talent, and favorable labor market conditions, thereby influencing the market.

Rising Government Incentives and Technological Advancements

Favorable government policies and incentives also influence the location of businesses. Tax incentives, grants, subsidies, and regulatory frameworks influence investment decisions and can attract businesses to specific regions or industrial zones. Policies promoting economic development, innovation, sustainability, or specific industries, such as technology or renewable energy can shape location choices and foster economic growth, this is contributing to the market. Apart from this, the availability of advanced infrastructure, research and development centers, technology clusters, and access to innovation ecosystems attract businesses in technology-intensive sectors, creating a positive market outlook. Furthermore, areas with a robust digital infrastructure and reliable internet connectivity support the growth of digital businesses and remote work, thereby impacting the market.

Location of Things Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global location of things market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on location type, application, and industry vertical.

Breakup by Location Type:

• Indoor Location
• Outdoor Location
   

Outdoor location dominates the location of things market

The report has provided a detailed breakup and analysis of the hospital logistics robots market based on the location type. This includes indoor location and outdoor location. According to the report, outdoor location represented the largest segment.

The widespread adoption of Internet of Things (IoT) technology plays a significant role in driving the outdoor location segment. As more devices and objects become interconnected, the need for accurate and real-time location becomes crucial for various applications, including asset tracking, fleet management, and logistics optimization, which is acting as another growth-inducing factor.

On the other hand, the increasing demand for precise and real-time location-based services within indoor environments is also expected to positively influence the demand for the indoor location segment. Additionally, the rapid growth of smart buildings and the Internet of Things (IoT) is leading to a need for efficient asset tracking, employee safety monitoring, and optimized operations within indoor spaces, thus creating a positive market outlook.

In line with this, the rising deployment of indoor navigation applications in retail, healthcare, hospitality, and transportation sectors is creating opportunities for personalized customer experiences, improved operational efficiency, and enhanced security. Moreover, the proliferation of smartphones and wearable devices equipped with location sensors is further fuelling the demand for indoor positioning technology.

Breakup by Application:

• Mapping and Navigation
• Location-based Customer Engagement and Advertising Platform
• Location-based Social Media Monitoring
• IOT Asset Management
• Location Intelligence
   

Mapping and navigation dominate the location of things market

The report has provided a detailed breakup and analysis of the location of things market based on the application. This includes mapping and navigation, location-based customer engagement and advertising platform, location-based social media monitoring, IOT asset management, and location intelligence. According to the report, mapping and navigation represented the largest segment.

The rapid growth of the Internet of Things (IoT) is leading to an increase in the adoption of connected devices and sensors, generating vast amounts of location-based data. This is supporting the demand for mapping and navigation applications as they play a crucial role in efficiently managing and analyzing this data to extract valuable insights.

On the contrary, the growing demand for targeted advertising and precise audience segmentation is expected to fuel the adoption of location-based customer engagement platforms, allowing businesses to reach their target audience at the right time and place. In addition, the need for data-driven decision-making in the retail, hospitality, and transportation sectors is driving the demand for location-based customer engagement and advertising platforms.

Apart from this, the growing popularity of social media platforms and the increasing trend of location-based services is contributing to the market. Additionally, the demand for real-time and personalized marketing strategies has intensified, making location-based social media monitoring applications invaluable for targeted advertising campaigns.

Breakup by Industry Vertical:

• BFSI
• Defense
• Government and Public Utilities
• Healthcare and Life Sciences
• Industrial Manufacturing
• Media and Entertainment
• Retail and E-commerce
• Transportation and Logistics
• Others
   

Transportation and logistics dominate the location of things market

The report has provided a detailed breakup and analysis of the location of things market based on the industry vertical. This includes BFSI, defense, government and public utilities, healthcare, and life sciences, industrial manufacturing, media and entertainment, retail and e-commerce, transportation and logistics, and others. According to the report, transportation and logistics represented the largest segment.

The emergence of location-based services and geolocation technologies is facilitating seamless transactions, location-based marketing, and fraud prevention, thereby increasing operational efficiency and security for BSFI companies. Additionally, the integration of geospatial analytics and artificial intelligence (AI) enables more accurate risk assessment, fraud detection, and asset management, leading to improved decision-making and risk mitigation strategies.

In line with this, continual advancements in technology, particularly in the field of autonomous systems and artificial intelligence, are driving the demand for innovative defense solutions. The integration of location-based technologies, such as GPS and geospatial intelligence, enables enhanced situational awareness and precise targeting capabilities, further boosting the demand for defense products and services.

Moreover, the widespread adoption of IoT technology enables enhanced monitoring, automation, and data-driven decision-making, leading to improved efficiency, cost savings, and resource optimization. This technology-driven approach enhances service delivery and contributes to sustainability and resilience goals, making it a key market driver in the location of things.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest location of things market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represented the largest segment.

The location of things industry in North America is driven by the region's advanced infrastructure, including transportation networks, logistics hubs, and communication systems. North America's well-developed road, rail, and air networks facilitate efficient movement of goods and enable companies to establish distribution centers strategically is significantly supporting the market.

Additionally, the proximity to major consumer markets is a significant advantage in the region. With a large population and strong purchasing power, North America offers a substantial customer base for businesses in the location of things sector. In addition, the presence of a skilled workforce and a robust ecosystem of technology and innovation is further driving the industry's growth in the region. The availability of research institutions, start-up incubators, and venture capital funding fosters innovation and entrepreneurship, attracting companies involved in the development of location-based technologies and services.

On the other hand, Asia Pacific region is expanding further in this domain during the forecast period. As location of things industry encompasses various technologies and services related to the Internet of Things (IoT), there has been a growing need for efficient infrastructure, smart transportation systems, and sustainable solutions to manage resources effectively. Furthermore, the region's favorable government policies, supportive regulatory frameworks, and investments in research and development further fuel the growth of the location of things industry in the Asia Pacific.

Competitive Landscape:

The global location of things market is experiencing a steady growth across the globe with the growing demand for efficient logistics and transportation systems, and fleet management solutions. Along with this, top companies in the location of things market are developing solutions that integrate with existing logistics systems to track shipments, monitor inventory levels, optimize storage and warehousing, and enhance overall supply chain efficiency, which is positively influencing the market. As cities across the globe strive to become more sustainable, efficient, and technologically advanced, there is significant market potential for LoT-based smart city solutions. This is encouraging key players are introducing IoT solutions for smart parking management, intelligent traffic control systems, waste management optimization, environmental monitoring, and energy management, further impacting the market. With the growing concern for environmental conservation, there is a considerable rise demand for LoT solutions that monitor and analyze environmental factors. Furthermore, the development of LoT-based devices and platforms for air quality monitoring, water management, waste management, and natural disaster prediction to mitigate environmental risks and promote sustainability is creating a positive market outlook.

The report has provided a comprehensive analysis of the competitive landscape in the global location of things market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Cloud Software Group, Inc.
• Environmental Systems Research Institute
• HERE Technologies
• International Business Machines Corporation
• Microsoft Corporation
• Navigine
• Pitney Bowes Inc.
• Qualcomm Incorporated
• Ubisense
• Verizon
• Wireless Logic
• Zebra Technologies Corp.

Recent Developments:

• In May 2023, The NASA Space Agency formed an association with International Business Machines Corporation (IBM) to produce comprehensive maps from satellite data and undertake environmental research and analysis.
• In April 2023, HERE Technologies launched UniMap, a cutting-edge, highly automated mapping platform that empowers developers to quickly produce bespoke digital maps and location products.
• In March 2023, Microsoft launched OpenAI-Powered Security Copilot that is new product for cybersecurity professionals. It utilizes GPT-4, the most recent iteration of OpenAI's big language model, and generative AI from Microsoft's security-specific model.

Location of Things Market Report Scope:

Key Questions Answered in This Report:

• How has the global location of things market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global location of things market?
• What is the impact of each driver, restraint, and opportunity on the global location of things market?
• What are the key regional markets?
• Which countries represent the most attractive location of things market?
• What is the breakup of the market based on the location type?
• Which is the most attractive location type in the location of things market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the location of things market?
• What is the breakup of the market based on the industry vertical?
• Which is the most attractive industry vertical in the location of things market?
• What is the competitive structure of the global location of things market?
• Who are the key players/companies in the global location of things market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the location of things market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global location of things market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the location of things industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.