During the financial crisis, there was a lot of uncertainty regarding the market by the investors and consumers. The unemployment rate went up and on the other hand, the retail market went down. But, the markets have improved now, with the USA GDP increasing by 4.2% lately. With the financial stability coming in, the unemployment rate also has also gone down. So, the consumers are having more disposable income to spend. This has helped the retail market in the North America region.
The North America location analytics market worth is USD 3.44 billion and is estimated to grow to USD 6.71 billion by the end of 2021, at a CAGR of 11.76% over the five-year forecasted period. The smartphone industry is very mature in this region. Many of the new smartphones are launched in this region before anywhere else in the world. Both Canada and the USA have more than 50% penetration of smartphones in their population. This increase in the smartphone and the retail industry is also growing, and the location analytics market is set to increase in the years to come.
Location analytics is emerging as one of the major segment in the field of market research. It is the process to generate insights from the geographical business data. 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.
The North American location analytics market has been broadly segmented into types of deployment and end-user industry. On the basis of the type of deployment, the market has been segmented into on-premise and on-demand models. Whereas, as per end-user industry, the market has been segmented into retail, banking, manufacturing, communications, travel and transport, professional services, energy, healthcare, government, entertainment and media and others.
In the past, retail held the largest market share in the overall North American market owing to the growing demand for analyzing customer buying behavior and requirements and managing marketing campaigns in the region. The market has also been segmented geographically into countries as the United States and Canada.
Some of the key market players mentioned in the report are Esri, Cisco, Galigeo, Microsoft, Pitney Bowes and Placed.
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 are some of the factors that have fuelled the growth of the market.
Security and privacy concerns associated with the market data, and limitations and error-prone nature of these databases are the some of the key factors hindering the growth of the market.
Key Deliverables in the Study