Location-based Services (LBS) and Real-Time Location Systems (RTLS) Market by Offering (Platform, Services, Hardware), Location Type, Technology, Application (Tracking & Navigation, Marketing & Advertising), Vertical and Region - Global Forecast to 2028
[298 Pages Report] MarketsandMarkets forecasts that the LBS and RTLS market size is projected to grow from USD 24.7 billion in 2023 to USD 60.4 billion by 2028, at a CAGR of 19.6% during the forecast period. The LBS market is poised for growth, driven by various factors. This includes the increasing availability of spatial data and analytical tools, a rise in consumer use of social media, smartphones, and location-based apps, and a growing demand for geo-marketing. The advent of 5G and affordable connectivity technologies has contributed to widespread connectivity. Improved connectivity and an increasing interest in customizing services based on users' location information have propelled the LBS and RTLS (Real-Time Location Systems) market. Additionally, recognizing the cost advantages of deploying solutions for tracking and managing assets (such as personnel and vehicles) is expected to fuel the market's expansion further.
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LBS and RTLS Market Dynamics
Driver: Increasing demand for UWB-based real-time location systems
The prevalence of RTLSs based on UWB technology in the healthcare RTLS industry has increased recently. The primary factor driving the UWB technology-based RTLS market for healthcare is the UWB technology's capacity to offer highly accurate positioning data of a person or object. Compared to most other RTLS technologies, UWB delivers greater precision and range at lower power consumption.
Its high penetration in applications needing great accuracy is a result of this. Patient tracking is one illustration of this. UWB technology can assist in determining the precise positions of both patients in a hospital room if there is a space of no more than one meter between two beds. Previously, the main barrier to its spread in several industries, including healthcare, had been the high price. However, prices have been falling over time, which is anticipated to increase demand for RTLS solutions based on UWB technology. For increased productivity, shortened lead times, and lower prices, several end users of RTLS technology have switched from other technology-based RTLS solutions, such as RFID and Wi-Fi, to UWB technology-based RTLS solutions in recent years.
Restraint: High installation and maintenance costs
Real-time location systems can be expensive to install, costing between USD 2 and 5 million. This varies depending on the installation region and business. The hardware cost of Wi-Fi-based RTLS is higher than that of UWB-enabled systems. Also, the upkeep of Wi-Fi and RFID-based systems is more expensive than that of systems based on UWB and BLE. Wiring, powering, and installing RTLS components increase the overall cost.
Also, many RTLS companies need help with deployment and technology. Many projects fail because they require significant engineering efforts and on-site preferences. Installation of RTLSs requires qualified personnel to be on-site at the installation time.
Opportunity: Growing use of BLE and UWB for indoor proximity services
Due to their long battery life and precision, BLE and UWB are employed for indoor proximity services. Currently, BLE is used when a three to six-second latency is acceptable. BLE tags typically give modest precision (about eight meters) and are inexpensive, simple to install, and incredibly portable. These tags range around 75 meters and have a three- to five-year battery life. They also work with smartphones.
Indoor processes that don't need much precision can employ indoor proximity services. UWB, on the other hand, is utilized in indoor operations that demand exceptional precision because it is more accurate than BLE (up to 30 cm). UW can only keep track of a limited amount of assets, however. UWB has low latency and good accuracy even in interference (measurements can be made up to 100 times per second). The implementation of its infrastructure is expensive and necessitates additional government certifications. Its battery can last up to 2 weeks and ranges up to 150 meters. It is rechargeable.
Challenge: System irreconcilability and lack of standardization
End users have access to a variety of LBS and RTLS solutions. However, it is challenging to combine the current solutions due to the absence of common standards. End users experience issues due to the incompatibility of numerous infrastructures and a lack of interoperability. The availability of solutions, including several interoperable technologies under one roof, is now the main worry in the RTLS market. Installation of an RTLS solution in an enterprise or other institutional setting may call for alterations to the current infrastructure, including adding new servers, middleware, and other components.
Although some businesses, including Zebra Technologies, Stanley Black & Decker, and Identec Group, offer RTLS that support many protocols, most industry participants concentrate on only one protocol. There is no interoperability between different RTLS because different technologies operate on other protocols and frequency bands, except those offered by a select few vendors, such as Zebra Technologies, offering a variety of RTLS technologies supported by the same middleware. Due to financial limitations, small and medium-sized businesses (SMBs) might need help to use these technologies within their enterprises, which would prevent standardization. The lack of standardization of protocols may also result in a lack of interoperability across providers. Moreover, vendors must refrain from complying with the existing standards, and using proprietary technologies for tracking has been identified as one of the significant barriers to adopting RTLS solutions.
LBS and RTLS Market Ecosystem
Prominent companies in this market include well-established, financially stable providers of the LBS and RTLS market. These companies have innovated their offerings and possess a diversified product portfolio, state-of-the-art technologies, and marketing networks. Prominent companies in this market include Cisco (US), Google (US), IBM (US), Microsoft (US), Oracle (US), Ericsson (Sweden), Qualcomm (US), TomTom (Netherlands), Zebra Technologies (US), ESRI (US), Teldio (Canada), HERE (Netherlands), Ubisense (UK), Apple (US), etc.
By location type, the Outdoor segment is expected to hold the largest market size during the forecast period.
Outdoor positioning involves locating data, assets, or individuals in open spaces using technologies such as GPS, satellites, infrared-based remote sensing, and other positioning methods, along with stylized mapping to facilitate navigation services. This technology is employed to track objects or people over long distances from any given location. Key outdoor positioning technologies encompass GNSS, cellular networks, and wireless networks, with GPS being the most widely used GNSS on mobile devices. Various positioning techniques have been developed, relying on high-accuracy, differential, and assisted GPS chips. The primary outdoor Location-Based Services (LBS) applications include geo-marketing and advertising, asset tracking, personal tracking, customer location tracking, fleet tracking, freight management, route optimization and planning, mapping discovery and infotainment, geographic event alerts, and defense management.
By offering, the services segment is expected to grow with the highest CAGR during the forecast period.
Services play a vital role in the overall implementation process of Location-Based Services (LBS) and Real-Time Location Systems (RTLS), with a particular emphasis on RTLS. Understanding the installation and maintenance details before deploying RTLS is crucial to determining the time and cost investments needed for platform installation. For example, specific RTLS installations may span several months, impacting staff productivity in settings like hospitals by disrupting the performance of existing systems. Conversely, solutions like Wi-Fi-based RTLS can be seamlessly integrated into the facility's existing wireless network infrastructure, leading to a shorter installation time. Beyond installation and maintenance services, the services segment encompasses professional services such as consulting, ROI analysis, and site inspection.
Based on region, Asia Pacific is expected to grow with the highest CAGR during the forecast period.
Asia Pacific LBS and RTLS markets are characterized by various applications, including indoor positioning systems, asset tracking, and workforce management. Industries like retail, healthcare, manufacturing, and logistics leverage these technologies to enhance operational efficiency and gain a competitive edge. Integrating LBS with emerging technologies such as IoT (Internet of Things) and AI (Artificial Intelligence) further amplifies the market's growth potential. Government initiatives supporting digitalization and the rising trend of e-commerce are additional factors contributing to the market's expansion. The dynamic nature of consumer preferences and the need for real-time analytics drive businesses to invest in advanced LBS and RTLS solutions. As the region continues to embrace Industry 4.0 trends, the Asia Pacific LBS and RTLS market are poised for sustained growth, presenting lucrative opportunities for both established players and emerging innovators.
Market Players:
The major players in the LBS and RTLS market are Cisco (US), Google (US), IBM (US), Microsoft (US), and Oracle (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, enhancements, and acquisitions to expand their footprint in the LBS and RTLS market.
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Report Metrics |
Details |
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Market size available for years |
2017-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) Million/Billion |
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Segments Covered |
Offering (Platform, Service, Hardware), Service (Deployment and Integration, Application Support and Maintenance, Consulting and Training), Location Type (Outdoor, Indoor), Application (Tracking & Navigation, Marketing & Advertising, Location-Based Social Networks, Location-Based Health Monitoring, Other Applications), Technology (Satellite, Microwave, and Infrared Remote Sensing, OTDOA and E-OTD, RFID and NFC, Context-aware technologies, Wi-Fi/WLAN, Ulta Wide Band, Bluetooth/BLE, Others), Vertical (Transportation & Logistics, Retail, Government, Manufacturing, Healthcare & Life Sciences, Tourism & Hospitality, Media & Entertainment, Other Verticals) and Region |
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Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
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Companies covered |
Cisco (US), Google (US), IBM (US), Microsoft (US), Oracle (US), Ericsson (Sweden), Qualcomm (US), TomTom (Netherlands), Zebra Technologies (US), ESRI (US), Teldio (Canada), HERE (Netherlands), Ubisense (UK), Apple (US), Securitas Healthcare (US), GE Healthcare (US), CenTrak (US), IDENTEC GROUP (Liechtenstein), Infor (US), TeleTracking Technologies (US), MYSPHERA (Spain), Aruba Networks (US), KDDI (Japan), NTT Docomo (Japan), AiRISTA Flow (US), Leantegra (US), Sewio Networks (Czech Republic), Quuppa (Finland), Navigine (US), Living Map (UK) |
This research report categorizes the LBS and RTLS market based on offering, technology, service, application, vertical, networking type, and region.
Based on Offering:
- Platform
- Service
- Hardware
Based on Service:
- Deployment and Integration
- Application Support and Maintenance
- Consulting and Training
Based on Location Type:
- Outdoor
- Indoor
Based on Application:
- Tracking & Navigation
- Marketing & Advertising
- Location-Based Social Networks
- Location-Based Health Monitoring
- Other Applications
Based on Technology:
- Satellite, Microwave, and Infrared Remote Sensing
- OTDOA and E-OTD
- RFID and NFC
- Context-aware technologies
- Wi-Fi/WLAN
- Ulta Wide Band
- Bluetooth/BLE
- Others
Based on Vertical:
- Transportation & Logistics
- Retail
- Government
- Manufacturing
- Healthcare & Life Sciences
- Tourism & Hospitality
- Media & Entertainment
- Other Verticals
Based on the region:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Spain
- Italy
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Australia and New Zealand
- South Korea
- Southeast Asia
- Rest of Asia Pacific
-
Middle East & Africa
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GCC Countries
- UAE
- KSA
- Rest of GCC Countries
- South Africa
- Rest of Middle East Africa
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GCC Countries
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In January 2024, TomTom announced the roll-out of its new TomTom Orbis Maps. The maps feature unprecedented coverage, including an industry-leading 86 million kilometers of transportation networks.
- In November 2023, Esri, a geographic information system (GIS) software leader, partnered with Microsoft to integrate its ArcGIS platform with Microsoft Fabric, a unified analytics platform. This integration will allow users of Microsoft Fabric to access Esri's powerful spatial analytics capabilities directly within their existing workflow.
- In May 2023, Google launched Geospatial Creator, which empowers individuals to swiftly create, visualize, and share immersive and augmented reality (AR) content using Unity and Adobe Aero
- In April 2023, Qualcomm and Xiaomi demonstrated mobile meter-level positioning capabilities powered by Snapdragon 8+ Gen 1 Mobile Platform in Germany, unlocking superior location capabilities. Meter-level positioning accuracy can improve smartphone user experience in numerous scenarios, including mapping, driving, and other mobile applications.
- In January 2023, Google Cloud Marketplace offered ESGSignals, a platform introduced by RS Metrics. It provides access to over 100 real-time environmental, social, governance (ESG), and environmental, climate, and physical (ECP) risk metrics at the asset level.
Frequently Asked Questions (FAQ):
What is the definition of the LBS and RTLS market?
Location-Based Services (LBS) can be defined as an information service provided by a device that delivers and updates information related to the location of the device as and when required. Implementing LBS requires the software application of a service provider, network and mobile-device-based technology, and a content provider for geo-specific information.
Real-Time Location Systems (RTLS) are local positioning and tracking systems that automatically locate and identify objects, people, or targets in real-time. RTLS systems are usually used indoors or within a building or other areas. RTLS tags, badges, or sensors attached to objects or worn by people communicate wirelessly with fixed receivers, readers, trackers, exciters, reference points, or access points installed nearby.
What is the size of the LBS and RTLS markets?
The LBS and RTLS market size is projected to grow from USD 24.7 billion in 2023 to USD 60.4 billion by 2028, at a CAGR of 19.6% during the forecast period.
What are the major drivers in the LBS and RTLS market?
The major drivers of the LBS and RTLS market are the increasing demand for UWB-based real-time location systems, the rising need for geo-marketing, and the growing demand for location-based and real-time systems and services in various industries.
Who are the key LBS and RTLS market players?
The major players in the LBS and RTLS market are Cisco (US), Google (US), IBM (US), Microsoft (US), Oracle (US), Ericsson (Sweden), Qualcomm (US), TomTom (Netherlands), Zebra Technologies (US), ESRI (US), Teldio (Canada), HERE (Netherlands), Ubisense (UK), Apple (US), etc.
What are the opportunities for new market entrants in the LBS and RTLS markets?
The significant opportunities in the LBS and RTLS market are the growing use of BLE and UWB for indoor proximity services, rising focus on IoT in healthcare, growing use of 5G for location-based services, and rising demand for real-time location systems in emerging regions. .
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The study involved four major activities in estimating the current size of the global LBS and RTLS market. Exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total LBS and RTLS market size. After that, the market breakup and data triangulation techniques were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as Bloomberg and BusinessWeek, have been referred to identify and collect information for this study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers; journals, such as Linux Journal and Container Journal; and articles from recognized authors, directories, and databases.
Primary Research
Various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the LBS and RTLS market along with the associated service providers, and system integrators working in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. Following is the breakup of primary respondents.
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and forecast the LBS, RTLS, and other dependent submarkets. The bottom-up procedure was used to arrive at the overall market size of the global LBS and RTLS market using key companies’ revenue and their offerings in the market. The research methodology used to estimate the market size includes the following:
- Extensive secondary research has identified the key LBS and RTLS market players.
- Regarding value, the market size has been determined through primary and secondary research processes.
- All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.
LBS and RTLS market Size: Bottom-Up Approach
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LBS and RTLS market Size: Top-Down Approach
Data Triangulation
With data triangulation and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
Location-Based Services (LBS) can be defined as an information service provided by a device that delivers and updates information related to the location of the device as and when required. Implementing LBS requires the software application of a service provider, network and mobile-device-based technology, and a content provider for geo-specific information.
Real-Time Location Systems (RTLS) are local positioning and tracking systems that automatically locate and identify objects, people, or targets in real-time. RTLS systems are usually used indoors or within a building or other areas. RTLS tags, badges, or sensors attached to objects or worn by people communicate wirelessly with fixed receivers, readers, trackers, exciters, reference points, or access points installed nearby.
Key Stakeholders
- LBS application developers
- LBS and RTLS software/service providers
- Network connectivity providers
- Wireless infrastructure providers
- Mobile content developers and aggregators
- Smart devices and consumer electronics manufacturers
- Venture capitalists, private equity firms, and startups
- Government bodies, such as regulating authorities and policymakers
- LBS and RTLS-related associations, organizations, forums, and alliances
Report Objectives
- To determine, segment, and forecast the global LBS and RTLS market based on offering, service, location type, application, technology, vertical, and region in terms of value.
- To forecast the size of the market segments to five main regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
- To provide detailed information about the major factors (drivers, opportunities, threats, and challenges) influencing the growth of the market.
- To study the complete value chain and related industry segments and perform a value chain analysis of the market landscape.
- To strategically analyze the macro and micro markets to individual growth trends, prospects, and contributions to the total market.
- To analyze the industry trends, patents, and innovations related to the market.
- To analyze the opportunities for stakeholders by identifying the high-growth segments of the LBS and RTLS market.
- To profile the key players in the market and comprehensively analyze their market share/ranking and core competencies.
- Track and analyze competitive developments, such as mergers and acquisitions, product launches and developments, partnerships, agreements, collaborations, business expansions, and Research and development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of an additional two market players
Generating Response ...
Growth opportunities and latent adjacency in Location-based Services (LBS) and Real-Time Location Systems (RTLS) Market