The Indoor Location Market is expected to register a CAGR of 21.7% over the forecast period 2021 to 2026. The emergence of indoor location systems has provided enterprises higher accuracy across different venues, regardless of the dimension and area of the facility. Besides this, the system has helped many manufacturing units to manage their floor level efficiently. The primary growth factors of the indoor location market are the expanded number of applications powered by beacons and Bluetooth Low Energy (BLE) tags and increasing integration of beacons in cameras, and Light Emitting Diode (LED) lighting, Point of Sales (PoS), and digital signage.
- With the arrival of cloud and IoT systems, the companies are now automating most of their operations. The healthcare sector is also anticipated to witness a more significant number of applications. The increasing IoT applications, devised with healthcare requirements, are supposed to contribute to the growth of the market study for the healthcare vertical. For instance, Texas Health saved USD 412,000 using the real-time location-based system, as medical equipment is now readily located and maintained.
- Moreover, growing usage of smartphones with innovative mobile applications, the trend of digitalization, mobile commerce, and technological advancements are encouraging the growth of the indoor location market, as nearly 41.5% of the total global population, as of 2019, were smartphone users according to a report by the United Nations.
- Furthermore, many retail firms are implementing Indoor Location technology in their marketing strategy. For instance, Walgreens uses Indoor Location to encourage customer loyalty by pushing a notification that lets the user open their app every time they enter a specific area. The user can further view promotional offers by looking at their account details. The implementation of Indoor Location in retail is, thus, promoting the market for location-based services.
- Indoor Location technology currently faces vast risks from government policies and regulations on consumer privacy. Most of the software application developers are growing aware of the rising international privacy laws, as well as industry codes of self-regulation, that govern its usage. Google is proposing to implement a new policy change that will require all app developers to undergo an approval process before their apps collect the user's location information while running in the background. This policy is applied for all new apps from August 2020.
- The spread of COVID-19 is generating a massive disruption in everyday activities never experienced before, calling it "a war on an invisible enemy," forcing to follow social distancing policies, temporarily suspending many business activities, and limiting travel. The use of Spatial Data Science and location-based data streams is more important than ever.
Key Market Trends
The Transportation and Logistics Vertical to Hold a Dominant Market Share
- The transportation and logistics verticals are anticipated to progress at the highest CAGR during the forecast period. The growth can be ascribed to the requirement to provide mobile support for passengers at airports and railway stations to guide them to the right place to locate restaurants and stores in airports and railways.
- Indoor location solution adoption supports the transportation industry to know customer behavior and give valuable information that could help in building magnified advertising campaigns, selecting the right locations, and optimizing services. Additionally, the selection of indoor location solutions enables the transportation vertical to control inventory effectively, track the missing equipment, and save costs on audits.
- The success of the transportation & logistics vertical depends on complex and recurring operations and capital-intensive processes. The logistics industry is enduring challenges in terms of tracking the asset location in the warehouses. The requirement to track and recognize asset locations to lessen wastage of time in asset location management to guide to the adoption of indoor location solutions across the logistic vertical.
- With the support of location analytics solutions, a firm can organize and interpret all complex plans, allowing it to obtain insights swiftly and communicate with them efficiently.
North America to Hold the Highest Market Share During the Forecast Period
- North America is anticipated to witness a notable share for the Indoor Location market due to the growing smartphone penetration and the growth of IoT technology in the area. The North American region is the second-largest market for tablets, smartphones, and in-vehicle navigation systems as well, the biggest manufacturer of aircraft, and one of the biggest manufacturers of aerospace and maritime navigation products.
- The United States commands a notable share in the North American region in almost all the end-user industries and particularly in the consumer electronics market. The country boasts substantial smartphone penetration and sales. For instance, according to GSM Association, the North American mobile market will be worth USD 280 billion in revenue in 2019, with the United States being the biggest market for mobile worldwide - around 50% greater than China. The sales are expected to grow even further with the country's plans to move toward 5G services as, by the end of 2022, 24% of connections on the continent will be on 5G networks, rising to 46% by 2025 - equivalent to 200 million 5G connections.
- In addition, the country boasts several infrastructures, such as equipment manufacturers, satellites, and supportive research funding, that are connected with government support to encourage the technology's penetration, and accuracy is affecting the market growth. For example, in November 2018, the US Federal Communications Commission (FCC) reserved off rules to enable devices in the country to access signals transmitted by Galileo Global Navigation System, this led the GNSS chip makers in the country to include the capability, thus improving the accuracy.
- Other principal determinants favoring the growth of the Indoor Location Market in North America include the growing investments in the development of different technologies and the use of indoor location solutions. The increasing number of indoor location firms across regions is further anticipated to drive market growth.
The Indoor Location Market is highly fragmented. Continuous research and technological advancements are anticipated to be the principal trends in the market. The firms are adopting diverse strategies to increase their customer base and mark their presence in the market.
- April 2020 - Inpixon announced that it had signed Unified Systems Inc. as an authorized reseller. Unified Systems Inc. is a systems integration company specializing in the design, installation, and maintenance of IP-based technologies. Inpixon’s offering provides Unified Systems Inc.’s broad and expanding customer base, a comprehensive indoor intelligence platform. The complete system will allow clients to manage visitor flow, obtain improved metrics around visitors, generate accurate employee analytics, and enhance security, including policy enforcement and asset tracking for government and private organizations.
- May 2020 - Leveraging its wifi, virtual Bluetooth LE, and analytics technologies, Mist Systems announced a series of new services designed to help organizations implement on-site contact tracing. The new services specifically include proximity tracing, journey mapping, and hot-zone alerting, giving enterprises visibility into their networks, as well as location-based contextual information about customers and employees.
- February 2020 - Cisco Meraki launched Phunware location-based services in the Meraki Marketplace. The Meraki Marketplace now provides Phunware, an essential channel to thousands of Cisco Meraki customers, across more than 100 countries worldwide, to suit the potential customers and existing clients' need for LBS solutions for their network environments, without the risk of deploying unproven technology.
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1.2 Study Assumptions
1.3 Scope of the Study
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Number of Applications Powered by Beacons and BLE Tags
4.3.2 Inefficiency of the GPS Technology in Indoor Premises
4.3.3 Growth of Connected Devices, Smartphones, and Location-based Applications
4.4 Market Restraints
4.4.1 Data and security related Issues
4.4.2 Deployment and Maintenance Challenges
4.4.3 Strict Rules and Regulations by Government
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Analysis on the impact of COVID-19 on the Indoor Location Market
5.2 By Application
5.2.1 Indoor Navigation & Maps
5.2.2 Tracking & Tracing Application
5.2.3 Remote Monitoring & Emergency Management
5.2.4 Other Applications
5.3 By End-user Industry
5.3.2 Transportation & Logistics
5.3.5 Oil & Gas and Mining
5.3.6 Government & Public Sector
5.3.8 Other End-user Industries
5.4.1 North America
5.4.3 Asia Pacific
5.4.4 South America
5.4.5 Middle East & Africa
6.1.2 Hewlett Packard Enterprise Development LP
6.1.3 Mist Systems Inc.
6.1.4 HID Global Corporation
6.1.5 Cisco Systems, Inc.
6.1.6 Google LLC
6.1.7 Microsoft Corporation
6.1.8 Acuity Brands, Inc.
6.1.9 Zebra Technologies Corporation
6.1.11 Ubisense Limited
6.1.12 Sonitor Technologies AS
6.1.13 Broadcom Corporation
6.1.14 HERE Global BV
6.1.15 IndoorAtlas Ltd.
A selection of companies mentioned in this report includes:
- Hewlett Packard Enterprise Development LP
- Mist Systems Inc.
- HID Global Corporation
- Cisco Systems, Inc.
- Google LLC
- Microsoft Corporation
- Acuity Brands, Inc.
- Zebra Technologies Corporation
- Ubisense Limited
- Sonitor Technologies AS
- Broadcom Corporation
- HERE Global BV
- IndoorAtlas Ltd.