The global location analytics market was valued at USD 8.35 billion in 2017 and is projected to reach a value of USD 19.61 billion by 2023, at a CAGR of 15.29% over the forecast period, 2018-2023.
Location analytics offers a wide range of potential applications to the users, not limiting itself to a single department or an organization. Several businesses are using geographical information for analyzing, visualizing, and understanding the location-based information in making decisions related to the organization. Location analytics further uses the past data of customer profiles and their preferences to understand various trends and patterns, globally. Growth in the retail industry, growing use of GPS devices, and technological advancements in the field of GIS technology are driving the location analytics market.
With more retail stores coming up, there is a huge chunk of raw data that comes along with the user as soon as he enters the store until he leaves after the final transaction. These data points are now being analyzed with different analytical solutions to better understand consumer behavior and purchasing patterns, which can be eventually utilized to provide a better customer experience the next time. Location analytics helps in contextualizing of location data so that meaningful insights could be drawn and strategies can be made, which can be used to gain a competitive edge over other market players. Leading organizations are using tools, such as pricing and assortment optimization, location analytics, and customer-driven marketing to achieve dramatic benefits.
Location analytics technology and Building Information Modelling (BIM) are used to intelligently model retail infrastructure. The integration of BIM with location analytics eliminates data redundancy, reduces costs incurred in design, planning, and other miscommunications. The increased need for packaging and logistics with location analytics for improved performance have driven the market growth. Many retail organizations are using location analytics to analyze revenue generated in different territories and to calculate region-wide profitability. Retail companies can analyze market campaign effectiveness in different locations and monitor competitors' activities. Other activities, such as merchandising, store operation, distribution, and market planning are also managed by location analytics.
Real-time data analytics in defense technology paved the way for broader applications of location data across multiple industries, such as retail, BFSI, and healthcare, among others. Huge technology support and growing automation trends are driving the growth of location analytics in this region. In addition, the advent of new technologies, such as Internet of Things, are being increasingly employed in this region, which are being integrated with existing conventional infrastructure to a large extent to extract optimal output from the collected information. This will help organizations gain substantial benefit. With a large amount of data being generated from this region, companies are looking for utilizing BI solutions to grow in the market.
Key Market Players: Cisco Systems, Inc., Microsoft Corporation, SAS Institute Inc., Oracle Corporation, SAP SE, Environmental Systems Research Institute, Inc. (ESRI), TIBCO Software Inc., Pitney Bowes Inc., Galigeo SAS, Trimble Inc., Hexagon AB, International Business Machines Corporation (IBM)