The GCC indoor location-based service (LBS) market is estimated to be worth more than $1.2 billion by 2025, according to a new study.
The introduction of connected smartphones by OEMs along with the rising number of innovative applications is expected to drive industry growth over the forecast period, said the study by Grand View Research, a US based market research and consulting company.
Indoor LBS uses a geographical information system (GIS) technology to find locations & routes and obtain traffic updates & navigation information. Moreover, they are used for attaining information regarding local events, infotainment, and promotional campaigns. The use of location-based services is expected to improve marketing effectiveness, customer support, and service delivery.
Consumers using indoor location-based services expect accurate and reliable real-time information. Services such as location-based advertising are largely used in the GCC region, especially by the retail sector. However, it is a challenging task for service providers to offer real-time information. Analytics and business intelligence is extensively used in location-based services.
The growing use of beacons for proximity and tracking applications is expected to stimulate the growth of indoor LBS market in the GCC region. The low cost of beacons enables their applications across various end uses, such as retail, BFSI, energy & power, and government, among others. Countries such as Saudi Arabia and UAE are implementing indoor LBS through proximity beacons for retail marketing applications.
The indoor LBS market in this region is regulated by various security compliances to prevent the misuse of information. Industry participants providing location-based information have to follow standards laid down by local regulating agencies.
Key findings from the report suggest:
• The increase in adoption of smartphones in GCC countries has stimulated the growth of indoor LBS market
• Proximity beacons are expected to be the fastest growing product segment, registering a CAGR of 53.2 per cent over the forecast period
• Growth in the retail sector in the GCC region has enabled the implementation of location-based systems, thereby stimulating industry growth in the region
• The use of location-based services for proximity application is expected to witness a phenomenal growth, registering a CAGR of 52.8 per cent over the coming years
• Saudi Arabia acquired the largest market share and comprised over 46 per cent of the total GCC market. The growth can be attributed to the rising infrastructure development in the region.