Market Trends of Location Analytics Industry
This section covers the major market trends shaping the Location Analytics Market according to our research experts:
FMCG and E-Commerce Sector is Expected to Hold Significant Market Share
- There has been an increasing trend in e-commerce establishments since the past decade. Mobile apps have contributed to their more tremendous success due to the personalization features. They are easier to use and form a direct link between the brands and customers, thus, enabling high levels of consumer engagement.
- Location analytics Mobile apps help e-commerce stores analyze the current market and consumer behavior, resulting in better market strategies. E-commerce services based on user geographic location have emerged as a significant segment of modern information services. In these user-intensive applications, quality of service is essential, and design methods rely on software standards to achieve quality.
- Moreover, E-commerce applications provide tailored offers to customers that reside in specific locations. These offers are delivered to customers through personalized notifications, which are more effective than general-purpose push notifications.
- In other words, marketplaces rely on artificial intelligence to identify locations and popular products. Once they have arranged the data, sellers can have their inventory shipped to the final location, incurring a one-time cost.
- Further, Warehouses are also using location analytics technologies to meet surging e-commerce demand, especially after the pandemic. In a survey of small- and medium-sized warehouse operators conducted by BizTechInsights on behalf of Zebra, 55% of respondents said they were planning to transform their operations to gain real-time guidance, improve decision-making and ensure that their performance was data-driven.
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Asia Pacific is Expected to Account For Significant Market Share
- Japan is home to one of the major automotive industries and is also a prominent exporter. With motor vehicle exports in value terms amounting to 12.8 trillion yen in 2020 and auto-related employment in Japan totaling 5.49 million people (as per Japan Automobile Manufacturer Association), the automotive industry is one of the Japanese economy's core industrial sectors and driving the location analytics market.
- With such a growing automotive industry, Japan has a well-built navigation infrastructure and focuses on building technology and infrastructure for autonomous vehicles. The country is implementing 3D maps with self-driving vehicles, offering disaster information via car navigation systems, an AI-based assistant for car navigation systems.
- According to the 48th China Statistical Report on Internet Development, internet users totaled 1.011 billion. The internet penetration rate reached 71.6% in the country as of June 2021, which is enormous considering the country's population. The high internet penetration rate and expanding smartphone audience are expected to create significant opportunities for location analytics solutions.
- India's social media penetration is growing significantly. In India, there are about 448 million social media users as of January 2021, and it has increased by 78 million between 2020 and 2021. WhatsApp is the most used app in India, followed by YouTube, Facebook, Instagram, and Twitter. Besides, various major social media enterprises are increasingly focusing on increasing their number of active users.
- Such trends show the excellent potential for the growth of the Location Analytics market in the country and encourage various vendors to include the service in their portfolio. For instance, in August 2021, IT services primary Wipro Ltd announced that it has partnered with HERE Technologies to offer location analytics solutions to customers from energy and utilities, manufacturing, transport and Logistics, telecom, and automotive industry verticals.
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