Indoor Location Market

Indoor Location Market Forecast, Global Trends & Overview

The global Indoor Location Market size was worth approximately $10.9 billion in 2023 and is poised to hit $29.8 billion by the end of 2028, at a registered CAGR of 22.3% during the anticipated period.

The growing penetration of smartphones and other connected devices which are equipped with GPS and other location-based technologies to track the location of users indoor, is expected to drive the growth of indoor location market.

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Indoor Location Market Growth Dynamics

Driver: The power of simultaneous localization and mapping (SLAM)

The advancement and effectiveness of indoor positioning systems are significantly driven by Simultaneous Localization and Mapping (SLAM) techniques. SLAM combines computer vision, sensor fusion, and mapping algorithms to simultaneously map an unknown environment and estimate the position of the observer within it. By leveraging data from various sensors, SLAM algorithms accurately track the user's location in real-time, even in complex indoor settings. These techniques create and update a map of the environment, incorporating new sensor data and estimating landmark positions. SLAM's visual and geometric understanding of the environment allows for accurate positioning and mapping, adapting to dynamic changes within indoor space. Integration with other indoor positioning technologies enhances the accuracy and reliability of the system. Overall, SLAM techniques drive indoor positioning systems by improving accuracy, providing real-time mapping, adapting to dynamic environments, and facilitating robust and reliable indoor positioning.

Restraint: Concerns related to data security and privacy

Location-based data is sensitive information that must be protected at all costs. However, several concerns and fears are established by looking at the technical details of IPS more closely. Indoor location-based techniques are used in various fields, such as object tracking and locating people within a certain range. Because people spend a lot of time indoors, it is important for users and service providers to get accurate indoor location information. There are several technologies to gain indoor location information, such as Wi-Fi, BLE, and RFID, which require the characteristics of data, security, and privacy. Fingerprinting is one of the most recent technologies that is being deployed by several verticals. Mobile device users usually make use of an application provided by the service provider to access information from indoor positioning services. In such cases, these users send their unique identifier (Media Access Control [MAC] address) to the server, which enables the service provider to gain information related to the position of the user, posing a serious threat to the privacy of the user. These threats of data leaks can be a major disadvantage for the adoption of indoor location technologies.

Opportunity: Increasing demand for RFID tags across retail industry

For retailers, meeting the needs of their customers is the most important job. If one can order a particular product online and the company can have it shipped to the local store, it can be a win-win situation for everyone. If the customer orders the product and gets notice that it has been shipped, but the store misplaces it, it can be a huge disadvantage for the retailer. RFID technology mainly uses passive tags for location-related information, which is characterized by a small radius of detection with no need for an internal source. RFID tags are implemented due to their reduced cost. RFID is a technology that can help retailers, consumers, and brand owners with the ability to have clear, real-time insights into their inventory and its use in self-checkout, product information, and payment processes. This technology is projected to appear throughout the retail world. For example, Mammut Sports Group AG has embedded Smartrac Circus Flex NFC tags into some of its products. This, in turn, will allow consumers to receive digital content through Mammut Connect, Mammut’s smartphone app. RFID helps brands and retailers become more efficient as it provides them with several new opportunities, insights, additional services, and customized, defined, and instant information.

Challenge: Dearth of uniform standards and interoperability, and system incompatibility

End users have to choose from a wider range of available solutions; however, the lack of uniform standards makes it difficult to integrate the available solutions. The incompatibility between various infrastructures and the lack of interoperability creates problems for end users. Companies such as Zebra Technologies, HID Global, and Inpixon provide indoor location solutions that support more than one protocol; however, most of the players in the market primarily focus on a single protocol. Since different technologies operate on different protocols and frequency bands, there is no interoperability between various indoor location solutions, except for solutions provided by a few vendors, such as Zebra Technologies, which offer multiple indoor location technologies that are supported by the same middleware.

Currently, the major issue in the indoor location market is the availability of solutions with multiple interoperable technologies under the same roof. The installation of the indoor location solution integrated with multiple technologies, either in an enterprise or any institutional area, requires changes to be made in the existing infrastructure, such as additional servers, middleware, and other integrated systems. Putting a tag on assets, equipment, or personnel requires location readers to be set up in the doorways and hallways and an alteration in the protocol to locate assets.

Indoor Location Market Ecosystem

companies in this market include well-established, financially stable provider of indoor location hardware, solutions and services. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Zebra Technologies (US), Cisco (US), Google (US), Microsoft (US), HPE (US).

Based on services, the managed services segment is expected to register higher CAGR during forecast period

Managed services play a vital role in indoor location tracking by providing comprehensive support and expertise in implementing and managing the infrastructure and systems involved. These services encompass the design, deployment, configuration, and maintenance of the indoor location tracking solution. Managed service providers offer technical expertise, monitoring capabilities, and ongoing support to ensure the smooth operation and optimization of the tracking system. Managed services provide all required skillsets to maintain and upgrade solutions, which are of utmost importance in the indoor location or positioning environment.

By technology, Bluetooth Low Energy (BLE) technology is expected to hold the largest market size during the forecast

The indoor location uses BLE signals from battery-operated beacons as its primary technology. One of the most recent technologies to develop and become a market standard is BLE, which is now present on the majority of devices. The bicycles were stolen from Michelin, a city in Belgium. Infsoft provided a Bluetooth beacon-based indoor tracking system based on infsoft Locator Nodes to resolve this issue. The solution allowed the local law enforcement to get the bikes back, convict the thieves, and lessen the quantity of thefts.

Based on vertical, the retail segment is expected to hold the largest market size during the forecast

Retailers need to manage their customer data to enhance customer experience. Retailers are now focusing on creating a 360-degree view of customers, which leads to customer satisfaction. Retailers use digital and offline marketing to increase sales. However, they often lack the means to connect with customers at the most important moment when they are passing by or in their stores. With the rising smartphone penetration and the changing consumer mobile buyer behavior, start-ups and established organizations are quickly looking for ways to provide location-based apps to engage their users indoors. Retailers may use indoor location software to boost sales, revenues, and customer pleasure. A decent mall navigation software enhances the shopping experience while also boosting sales. Location analytics provides accurate information on visitor flows within a property. The adoption of location-based marketing applications to drive product sales for higher revenues and profitability would increase customer experience.

Based on region, North America is expected to hold the largest market size during the forecast

Due to the widespread acceptance of technology by people and the presence of the major market players in the area, North America is anticipated to hold the highest share of the indoor location market during the forecast period. With substantial developments in the creation of smart cities, the US and Canada are the main markets in the area. In order to improve people and asset tracking throughout huge buildings, businesses, particularly in the US, have begun implementing indoor navigation and indoor tracking solutions. The rise of vendors in North America is being driven by the use of technologies like BLE, Wi-Fi, and UWB. Companies like Zebra Technologies, Inpixon, Apple, and Microsoft have launched indoor location solutions and services to meet the diverse needs of businesses and their clients as a result of rising consumer demand for indoor maps and the limited features of indoor GPS technology.

Market Players:

The major vendors in this market include Zebra Technologies (US), Cisco (US), Google (US), Microsoft (US), HPE (US), Apple (US), Esri (US), Acuity Brands(US), Inpixon(US), HERE Technologies (US), HID Global (US), CenTrak (US), Sonitor (Norway), Ubisense (UK), infsoft (Germany), Polaris Wireless (US), Quuppa (Finland), Securitas Healthcare (US), Navigine (US), Blueiot (China), Kontakt.io (US), AiRISTA (US), InnerSpace (Canada), Syook (India), Oriient (Israel), Navenio (England), Situm (Spain), Pozyx (Belgium), Azitek (Portugal), and Mapxus (China). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the location based entertainment market.

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Scope of the Report

This research report categorizes the indoor location market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Hardware
  • System on Chip
  • Beacons
  • Tags
  • Sensors
  • Gateways
  • Fixed Readers
  • Wi-Fi Access Points
• Solutions
  • Indoor Tracking
    • Asset and People Tracking
    • Indoor Location Analytics
  • Indoor Navigation
  • Database Management System
• Services
  • Professional Services
    • Training and Consulting
    • Support and Maintenance
    • System Integration and Implementation
  • Managed Services

Based on Application:

• Emergency Response Management
• Sales and Marketing Optimization
• Remote Monitoring
• Predictive Asset Maintenance
• Supply Chain Management
• Inventory Management
• Other Applications

By Technology:

• BLE
• UWB
• Wi-Fi
• RFID
• Magnetic Positioning
• Other Technologies

By Vertical:

• Retail
• Travel and Hospitality
• Media and Entertainment
• Transportation and Logistics
• Government and Public Sector
• Manufacturing
• Healthcare and Pharmaceuticals
• Other Verticals

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • UAE
  • KSA
  • Israel
  • South Africa
  • Rest of Middle East and Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In January 2023, Apple launched Apple Business Connect. Apple Maps gained a new tool Apple Business Connect: It will now allow business owners to update and manage their own information on the platform, including key details like business hours and location, photos, logos, special offers and promotions, and more.
• In April 2022, Google partnered with Oriient, to create a joint offering for in-store navigation and proximity marketing.
• In January 2022, Cisco acquired Opsani. The acquisition will further enable Cisco AppDynamics to grow its product and engineering team and expand its platform's capabilities.
• In January 2022, HERE launched Indoor Map as a service: a one-stop shop for indoor mapping solutions that includes indoor map data, routing, and positioning, all available through the HERE SDK and seamlessly connected with its base map.

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