Africa Location-Based Service Market Size

Africa Location-Based Service Market Analysis

The Africa Location-Based Service Market size is estimated at USD 0.26 billion in 2024, and is expected to reach USD 0.45 billion by 2029, growing at a CAGR of 11.68% during the forecast period (2024-2029).

• The Africa location-based services market is largely driven by the increasing focus on mapping and navigation location-based advertising coupled with the high proliferation of smartphones and emerging use cases of Location-based services (LBS) due to the high penetration of social media and location-based app adoption.
• LBS have significantly emerged over the past few years across the region. It is growingly being used to locate individuals in an area, locate the nearest restaurant, or advertise deals to nearby shoppers. Further, the growth in smartphone, social media, and Internet penetration in countries like South Africa and Nigeria has propelled the adoption of location-based services.
• The growing digital transformation of end-user industries across the region, coupled with the advancements in location services hardware and software, is propelling the growth of the Africa location-based services market. Further, the market is witnessing significant demand for outdoor location-based services in the transportation and logistics sector, with the retail industry actively using indoor location-based services for location-based advertising. Such factors positively influence the demand for location-based services in the region.
• Moreover, the accessibility of global positioning system (GPS) technology coupled with the growing need for business analytics using geo-data in various end-user industries ranging from retail to banking, financial services, and insurance (BFSI) is analyzed to drive the market growth, as location-based services can provide and evaluate real-time location-data, thus raising the need for an analytical solution. Such developments are analyzed to offer significant growth opportunities for location-based services market vendors to expand their location-based hardware, software, and service offerings in the African region.
• Further, the rise of online retail in South Africa has fuelled the demand for accurate, timely deliveries, and with heightened customer expectations, making successful first-time deliveries has become pivotal in shaping consumers' perceptions of businesses. This has increased the demand for location-based services in the logistics and retail business to provide accurate and timely deliveries.
• The post-COVID-19 market scenario of the Africa location-based services market is expected to witness growth return and is anticipated to endure throughout the forecast period. The enhanced digital transformation in the region continues to enhance and drive the adoption of overall location-based services across various industries, thereby supporting the post-COVID recovery of the market.