Location-based Services (LBS) and Real-time Location Systems (RTLS) Market

Services dominate the market because businesses are increasingly leaning toward operational support and managed offerings rather than one-time hardware purchases. After the initial setup, organizations need help with installation, system configuration, customization, and continuous platform maintenance. These tasks offer predictable recurring revenue through service contracts and cloud subscriptions. Managed and professional services lower upfront capital costs and shift expenses into operational budgets, increasing purchasing flexibility. The complexity of multi-vendor settings and the need to connect hardware, software, and analysis layers raise demand for systems integration, training, and ongoing support. As a result, service offerings capture a larger share of total market value and remain crucial in customer decision-making.

The indoor location segment is the fastest-growing because satellite-based positioning is ineffective indoors, and demand for indoor use cases is expanding rapidly. Warehouses, hospitals, and retail complexes require precise indoor tracking for asset management, staff safety, and customer wayfinding. Improvements in ultra-wideband, Bluetooth low energy, and camera-based positioning have increased indoor accuracy and lowered deployment overhead. Investments in private wireless networks, indoor mapping tools, and edge computing further support scalable implementations. As organizations pursue automation, robotics, and process optimization within buildings, indoor location solutions become essential to achieving operational goals.

Tracking & navigation is the largest application because it addresses core operational and consumer needs across logistics, retail, and public services. Real-time tracking shortens the time spent locating equipment and personnel, improves asset utilization, and reduces idle time, resulting in measurable cost savings. Navigation features improve customer experience by simplifying wayfinding in complex venues and support accessibility services for visually impaired and elderly users. The combined application set also enables analytics for route optimization, fleet management, and demand forecasting. Because these functions directly improve throughput and customer satisfaction, they consistently attract the largest share of deployments and investment.

Bluetooth low energy is the largest enabling technology because it balances cost, power efficiency, and broad device compatibility for many deployments. BLE tags and beacons are inexpensive to produce and can connect easily to existing Wi-Fi and cellular infrastructure, reducing incremental capital requirements. The technology supports low-power operation, extending tag battery life and reducing ongoing maintenance for large tag populations. A broad ecosystem of chipset vendors, module manufacturers, and developer tools shortens development cycles and encourages third-party integrations. These practical advantages make BLE the default choice for many large-scale LBS and RTLS projects.

Healthcare and life sciences are rapidly expanding sectors driven by increasing demand for patient safety, asset visibility, and workflow efficiency across various care settings and clinical operations. Hospitals utilize Real-Time Location Systems (RTLS) to quickly locate critical devices, expedite patient transfers, and improve bed management. Regulatory requirements focused on infection control, traceability, and medication handling are encouraging investment in location-enabled systems. Additionally, clinical research and pharmaceutical manufacturing rely on tracking to manage trial logistics and maintain cold chain integrity. The need for staff safety, lone worker monitoring, and contact tracing further broadens the range of applications. Together, these factors contribute to higher adoption rates and accelerated growth in this sector.