Location-Based Services Market: Current Analysis and Forecast (2025-2033)

Global Location-Based Services Market Size & Forecast

The Global Location-Based Services Market was valued at USD 36,976.27 million in 2024 and is expected to grow at a CAGR of around 18.96% during the forecast period (2025–2033F), driven by increased use of smartphones and mobile devices, expansion of the smart city network, and the growth of on-demand services.

Location-Based Services Market Analysis

Location-based service is a software service for mobile devices and smartphones. These applications and devices use the customer's live location and make decisions according to the generated geo-data based on the user's location. Additionally, many companies, such as food delivery companies like Swiggy, Zomato, and Uber Eats, use LBS to track the user location and match the delivery agent and customer location. Navigation services such as Google Maps and Azure Maps also use LBSs. Google Map communicate with satellite signals using GPS and generates data. Further, using a variety of GPS data, it then creates an imaginary map. Google Maps also tracks traffic conditions and provides updates, reducing the time for users. Additionally, people can use location-specific information based on their current destination or locality. Many big companies are increasing the use of proximity services. Companies use technologies such as Bluetooth location, Wi-Fi location, or geodata to identify consumer location or surroundings, and based on that, they send personalized messages, offers, coupons, notifications, or advertisements to their smartphones after tracking their location or surroundings, which can help them make informed decisions.

Global Location-Based Services Market Trends

This section discusses the key market trends that are influencing the various segments of the global location-based services market, as found by our team of research experts.

Increased Use of Proximity Services

Among the major trends in the Location-Based Service market, the increased use of proximity services is the most prominent one. Proximity services are part of a location-based experience that occurs when a user, a device, or an object approaches a specific place or object. They are based on Bluetooth Low Energy Beacons, NFC, Wi-Fi, UWB, and small area geofences to identify proximity with great precision. Some common applications are retail offers, check-in without a line, indoor navigation, asset tracking, social discovery, and safety alerts. Proximity services increase engagement and efficiency and are only possible through timing and place, whereas privacy, consent, and on-device processing are fundamental design imperatives today. Companies use location-based services to send personalized notifications, offers, and discounts to customers’ devices when they are near a specific spot. Proximity services depend on Wi-Fi, GPS, and Bluetooth networks to find when the customer is near a specific store, mall, or restaurant. For example, retail stores such as Big Bazar use proximity service to send offers or discounts to the user’s device when they are inside or near the store. Additionally, the airport provides updates to passengers regarding gate changes or boarding when they are near a particular terminal using proximity services. Hence, proximity services allow companies to send notifications and messages at the right time and place, improving sales and customer engagement.

Location-Based Services Industry Segmentation

This section provides an analysis of the key trends in each segment of the global location-based services market report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Services Segment Dominates the Location-Based Services Market

Based on component, the location-based services market is segmented into hardware, software, and services. In 2024, the service segment dominated the market, and it is expected to continue doing so during the forecast period. The LBSs utilize customer location data to generate geodata, and after analysis, companies make decisions. Hardware collects raw data in the form of geo data, and software organizes that data. The services segment then turns that information into valuable insights and uses it to solve real-world problems. For example, the most common LBS services are Uber, Rapido, Lyft, and DoorDash apps. Such apps use a user’s location and connect them with their nearby local drivers, and the user can also navigate their live location. Companies also use such apps as fleet management, which allows them to track the live location of their delivery vehicles, optimize routes, and ensure on-time delivery. The hardware and software provide a foundation, while the services provide the final solution and help in generating real-time data analytics, which enables businesses to make decisions. Additionally, services like Google Maps, which provide real-time traffic updates and directions, help people save time and reach their destinations more efficiently.

The Outdoor LBS held the Largest Market Share in the Location-Based Services Market.

Based on location, the Location-based services market is segmented into Outdoor LBS and Indoor LBS. The outdoor LBS segment dominated the location-based service market in 2024. Smartphones use GPS technology to track users' locations and interact with the outside world. GPS communicates with satellite signals, and it is difficult for those signals to penetrate thick walls. For indoor signal communication, smartphones use Bluetooth and Wi-Fi signals to exchange information with each other and track their location. Furthermore, navigation applications such as Google Maps use GPS to communicate with satellite signals and then create an aerial imaginary map. The transportation industry heavily depends on GPS for tracking its vehicles’ live location through fleet management systems. The delivery and ride-hailing services rely on GPS data for tracking real-time users' location, route optimization, and timely delivery of goods and services.

North America Dominated the Global Location-Based Services Market

The North America location-based service market dominated the global location-based service market in 2024 and is expected to maintain its position in the forecast period. This growth has been driven by the accelerated development of 5G networks and 5G network infrastructure worldwide, as well as declining smartphone prices. As smartphone prices are coming down, more individuals are opting for greener options, particularly in the developing world, including China, India, and other countries. Moreover, the utilization of IoT devices has not only contributed positively to the expansion of the market, but they have also created data that is utilized in LBS to make decisions more effectively. Additionally, companies are adopting fleet management technology for real-time monitoring of their trucks and also to facilitate their timely delivery, and to make decisions based on the response given by the user. Moreover, AR/VR game LBS is highly demanded. As an illustration, Snapchat can share your live location with friends via features like Snap Map, Lenses, and Geofilters.

The USA held a dominant Share of the North America Location-Based Services Market in 2024

The strong growth of the U.S. location-based services market is backed by a number of unique, nationally focused factors. First, high smartphone penetration (projected mobile connections will reach 91% by 2028) creates a huge user base for location-based mapping, navigation, and proximity services. At the same time, the national deployment of 5G for more than 300 million Americans improves precision and speed to the point where real-time and high-bandwidth LBS applications are possible. Indoor positioning and outdoor positioning technologies are being adopted by a range of vertical sectors, with demands for real-time visibility of operations driving them (especially across logistics, healthcare, and retail). In addition, federal efforts such as the FTA's standardized GTFS datasets are increasing the available capabilities for multimodal transit planning and analytics beyond basic navigation. Progress in spatial analytic tools, such as CARTO GenAI and Oracle Spatial AI, is reducing information technology entry barriers by allowing natural-language access to geospatial data. Finally, market practices are evolving to conform to the changing privacy expectations of the public, as evidenced by the passage of the California Location Privacy Act (AB 1355) and future state data sovereignty legislation, which emphasizes privacy-by-design architectures and fluid, flexible consent workflows.

Location-Based Services Industry Competitive Landscape

The global location-based services market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Location-Based Services Companies

Some of the major players in the market are Google, HERE, Cisco Systems, Inc., IBM, Apple Inc., TomTom International BV, Qualcomm Technologies, Inc., Zebra Technologies, Microsoft, and Ericsson.

Recent Developments in the Location-Based Services Market

• In January 2025, Apple collaborated with Tech Mahindra to improve its own Apple Maps application in India, through upgrading the Look Around option that allows users to see a panoramic view of the street at 360 eye level. It is a combination of big ground surveys comprising both a vehicular and a portable system to provide quality map data in the different states. The project will be geared towards proper and current mapping data of the area, adhering to Indian geospatial rules, and reinforcing the LBS Industry within the country.

• In October 2024, Sensites connected with Qualcomm Technologies, Inc., to develop a network of real-time solutions to the cold chain. This collaboration uses the Aware Platform of Qualcomm to add to the product range of Sensitech with added validation of global location levels, plus reliability. The supply chain is targeted to enhance real-time visibility, connectivity, and energy efficiency so that time-sensitive products such as food and medications can reach their destination safely. This program is one of the many attempts to bring about more and more contact, automation, and sustainability in the supply chains.

• In September 2024, IBM introduced its IBM TRIRIGA Application Suite v11.6, which brings important new capabilities to enhance real estate and facility management. The latest AI-so-capable Maximo Monitor provides occupancy, energy, and asset data in real-time to enhance decision-making. Moreover, TRIGA Location Service with Esri is interoperable with ArcGIS on Kubernetes, thus it supports innovative indoor mapping, wayfinding services, and GIS visualization to improve the use of space and analysis of portfolios.

Global Location-Based Services Market Report Coverage

Reasons to Buy Location-Based Services Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global location-based services market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.