The Middle East and Africa region are the second largest market for mobile phones and the smartphone market is also growing at a rapid rate. Some countries like the UAE and Saudi Arabia have a very high smartphone penetration. Due to these reasons, the location analytics market is set to increase in this region in the period to come.
Africa is on the rise. Economy, for the most part, is booming given the relatively stable political scenario in the region. Africa’s GDP growth from 4.7% to 5.2% in the past few years and the FDI growth of 16%, reaching USD 43 billion, shows a positive economic trend. With inflation in the region going down from 10.7% to 6.2%, domestic spending is on the rise. Retail, from e-commerce to mom and pop stores, has racked up the biggest gains. The economy of the Middle East countries grew from 3% to more than 5% and the inflation rate has remained relatively constant. This gives the consumer more money in hand to spend on products from the markets.
Location analytics is emerging as one of the major segment 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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