LONDON–Technavio’s latest report on the location-based services (LBS) market in the US provides an analysis of the key trends expected to impact the market through 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Technavio announces top four emerging trends impacting the LBS market in the US through 2020.
The LBS market in the US is expected to exceed USD 18 billion by 2020, growing at a CAGR of over 30%.
According to Rakesh Kumar Panda, lead analyst at Technavio for m2m and connected devices research, “The LBS market in the US is likely to witness significant growth during the forecast period due to the increasing use of indoor LBS solutions in the retail sector. Indoor LBS analytics helps retailers track the buying patterns of the customers and offer specific discounts or coupons accordingly. Such customized service improves the shopping experience, which in turn increases sales revenue.”
The top four emerging trends influencing the LBS Market in the US according to Technavio’s ICT research analysts are:
LBS using LED fixtures
The use of LED fixtures for LBS ensures a cost-effective approach for indoor positioning as it removes additional hardware infrastructure beyond the lights themselves. The chips manufactured by lighting companies are embedded in LED-based overhead lights and are used in offices and big-box stores. These chips communicate with consumers’ smartphones and use sensors to track a customer’s movement in a shop.
Indoor LBS using LED fixtures provide directions to varied services in airports, museums, and retail shops. These services help people locate the required products or services quickly. Also, they help retailers offer customized incentives and sales offers to shoppers, which helps to increase sales volume.
Integration of location-based search with social networking websites
The use of social networking sites such as Facebook, Twitter, and Flickr on mobile platforms is rapidly increasing worldwide. Also, the use of LBS applications on smartphones is also witnessing significant growth. Therefore, most handset manufacturers and LBS providers are developing applications that integrate location-enabled search with social networking sites. This integration helps users post updates on social networking platforms with exact location information.
LBS providers such as GeoSolutions Holdings, Pelago, and Loopt offer location-based mobile social networking services, allow users to share real-life experiences using geo-tagged, user-generated multimedia content. Also, the users can reach advertisers on their social networking sites based on their location. In addition, the integration of location-based search with social networking websites assists local advertisers to target potential users easily.
Increased use of 3D platforms
The use of geospatial information has increased considerably over the years. Companies such as Atos use GIS platforms with LBS to offer services to businesses involved in supply chain management, data centers, infrastructure development, urban planning, risk and emergency management, navigation, and healthcare. Also, NTT DOCOMO provides an app based on the eeGeo Platform (a maps platform), which shows information about distinct seasonal changes and weather conditions.
Augmented reality technology uses GIS information and 3D platforms to provide virtual information about users and their surroundings. This information helps enterprises understand the needs of users and send targeted advertisements to them.
The use of logistics and supply chain management 3D platforms and management software increases efficiency and minimizes cost. 3D visualization provides clarity of information about routes, warehouse utilization, and throughput. Software management offers information about transportation. Consumers tend to modify the transport path and the stock configuration until the performance is optimized.
BLE-based beacons changing traditional retailing
Beacons improve the shopping experience and provide valuable and location-based information to marketers. Beacons also create a strong bond between customers and retailers through proximity marketing services.
The micro-location capabilities of beacons enable retailers to interact directly with their clients. For instance, in 2014, Safeway and Giant Eagle deployed beacons in nearly 200 grocery stores across the US. These beacons communicate with the supporting apps and send relevant pop-up notifications to people as they pass through the shop.
“Beacons also enable retailers to track the effectiveness of their advertising campaigns. Furthermore, they allow for relevant mobile retargeting and ensure that people are not spammed with unnecessary information,” says Rakesh.
Some of the top vendors for the LBS Market in the US, as researched by Technavio analysts are:
Browse Related Reports:
- Indoor LBS Market in Western Europe 2015-2019
- Global Indoor LBS Market 2015-2019
- LBS Market in India 2015-2019
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