Location data continues to be a critical piece of information that adds context to a wide range of data types, including transactional, social, user, and sensor data. 

By understanding the location where data is being generated, businesses and organizations can gain insights into a range of factors such as customer behavior, traffic patterns, and resource utilization, among others. This, in turn, can be used to inform business decisions and optimize operations.

According to Future Market Insight market research, the global location intelligence market is expected to experience significant growth in the coming years, with an estimated value of USD 81.74 billion by 2033. This growth is driven by a number of factors, including the increasing availability of location data from sources such as mobile devices and connected sensors, as well as the growing demand for location-based services across a range of industries.

The location-based services market is growing rapidly, and North America and Asia-Pacific are the two largest regions in terms of market size in 2022. The growth of the location-based services market is being driven by factors such as the increasing use of smartphones and mobile devices, the rise of e-commerce, and the growing demand for personalized and location-based advertising. 

In addition, location-based services are being used in a wide range of industries, including transportation, retail, healthcare, and hospitality, among others, which is further fueling market growth.

1) Real-time data availability

The emergence of faster 5G connectivity and increasing bandwidth has made it possible to transmit and process data in real-time, including data from mobile phones. This has led to the growth of real-time data applications and services that can provide immediate insights into customer behavior, location-based services, and other real-time information.

Real-time data availability has numerous benefits for businesses and organizations, including the ability to make faster and more informed decisions, enhance customer experiences, and improve operational efficiencies. 

Real-time data can also help companies to detect and respond to potential issues or opportunities quickly, which can give them a competitive advantage in the marketplace. As such, real-time data availability has become an increasingly important consideration for businesses across a wide range of industries.

2) Increase in new use cases

The use cases for location intelligence applications have expanded beyond just businesses and are now being utilized by governments and welfare organizations as well. Location intelligence applications can provide valuable insights into a range of issues, including public safety, emergency response, healthcare, urban planning, and environmental monitoring, among others.

Organizations across various industries are increasingly exploring and developing innovative use cases for leveraging location intelligence to improve their business processes. By analyzing location data, retailers can gain insights into consumer behavior, including where they shop, how often they visit, and what products they are interested in. Retailers can use this information to improve their marketing campaigns and tailor their messaging to specific customer segments.

3) Personalized customer experience

Rich customer experience and tailored brand messaging are essential factors for businesses to grow their consumer base. Location intelligence can play a crucial role in achieving these goals by providing retailers with accurate and actionable information about their customers’ behavior and preferences.

A recent survey by Forbes found that 75% of retailers ranked location intelligence as critical for their revenue growth strategies. By using location data to gain insights into customer behavior, retailers can tailor their marketing messages to specific customer segments and provide a more personalized shopping experience. This can lead to increased customer loyalty and higher sales.

By leveraging location analytics data, restaurants and retail stores can provide their customers with a more personalized and relevant experience, which can increase footfall and attract existing customers. For example, a restaurant might use location data to send a personalized menu to a customer who has previously ordered a specific type of cuisine.

These functionalities work as highly contextual marketing tools based on location data, which can help to improve sales and customer loyalty. By providing customers with a more personalized and convenient experience, restaurants and retail stores can differentiate themselves from their competitors and increase customer engagement.

4) Indoor mapping

Indoor mapping has become easier with the help of location intelligence data garnered from various sources such as WiFi networks, beacons, and GPS apps. This data can be used to create 3D indoor geospatial views of various types of infrastructure, including auditoriums, airports, music halls, theaters, residential and government buildings, shopping malls, and other general stores.

Indoor mapping is a valuable tool for strategic decision-making, marketing, and business intelligence, while also adding value to the user experience. By providing accurate and accessible information about indoor spaces, indoor mapping can help to improve navigation, reduce frustration, and enhance the overall store experience. 

5) Data compliance 

In 2023 and beyond, data compliance will be a priority for location data providers and businesses that rely on location data. With the increasing security of data privacy and security regulations around the world, companies will need to prioritize transparent business practices, dedicated consent management systems, and enhanced security and compliance mechanisms to ensure the responsible collection, processing, and use of location data.

 

Companies that prioritize transparent business practices, dedicated consent management systems, and enhanced security and compliance mechanisms will be better positioned to succeed in the evolving data privacy and security landscape.

6)Fit-for-purpose data sourcing

Fit-for-purpose data sourcing will be a critical factor for both location data buyers and sellers in 2023 and beyond. By fit-for-purpose data feeds, businesses can ensure that they are making informed decisions and achieving their business objectives more effectively. This requires a deep understanding of the specific types of data that are most relevant to their needs, as well as a willingness to work closely with data providers to ensure that the data they receive is of the highest quality and tailored to their unique requirements.

Companies that prioritize quality and relevance in their data procurement strategies will be better positioned to succeed in the increasingly competitive location data marketplace.