In the year 2012, the retail and the wholesale services represented 11% of the EUs GDP and has been increasing since then. There are more than 6 million companies active in this sector. The demand in the EU region for products varies from country to country. In countries like Portugal, Spain, Greece and Italy which are still battling the economic downturn have lesser demand for products. Recently, the unemployment rate was more than 15% and more than 25% in Spain which reduced the spending capacity of the people in the region. But, in countries like Russia, Poland and Turkey, the demand has been increasing. Turkey is one of the countries in the EU where the GDP is rapidly growing. The European smartphone market is one of the most successful in the world with almost 50% penetration, which is one of the highest in the world. The use of smartphones is increasing in this region and this will help the location analytics market to grow in this region.
Location analytics is emerging as one of the major segments in the field of market research. With more retail stores being established each day, there is a chunk of user data that is generated every time a consumer or customer enters the store and till he leaves after the final transaction is done.
These data points are now being analyzed with different analytical solutions. Location-based analytics helps in contextualizing of location-centric data, so that meaningful insights could be derived from the same and strategic business decisions could be made. This data could in-turn be used to enhance the customer experience as well as gain a competitive edge over other market players. By leveraging smartphones with wi-fi networks, location analytics vendors have made it possible to get location analytics solutions up and running at a minimal cost.
The rise in all the customer-facing industries has led to the introduction to wi-fi location analytics (LBS) system that allows the customers to connect through on-site wi-fi, which opens a direct channel of communication that enables the retail centers and similar others to better understand their customers and accordingly, deliver products as per the customer’s needs. Understanding the customer’s needs via this method helps maximize retail output and retail services.
Different analytics solutions are quite popular now such as the web analytics. Location-based analytics will become the need of the hour for designing and measuring experiences of customers. In the near future, location analytics solutions will become a commonplace in the marketplace.
Some of the key market players mentioned in the report are Esri, Cisco, Galigeo, Microsoft, Pitney Bowes and Placed.
Some of the important factors driving the location analytics market are the consistent growth in the retail market, increasing adoption of analytical business intelligence and geographic information systems technology and also, the increasing focus on the needs of customers and customer satisfaction.
The factors restraining the location analytics market are the security and privacy concerns associated with the market data, and limitations and error-prone nature of these databases.
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