According to the research, more than 80% of the total business data contains geographic reference or location component. Overlooking the location of the customers or business can cost dearly to a business, which is why more and more businesses are practicing analysis of this component. Location analytics is simply the process of gaining business insight from geographic component of the business data. This type of business intelligence is easily attained through the means of GIS or geographic information system. Needless to say, the global location analytics market is growing at a remarkable rate. The rise in demand and adoption of the advanced technologies available in the market are expected to create exciting business opportunities for the existing as well as new players in the market.
Segments in Location Analytics Market
The global industry is segmented on the basis of the types of software, applications, services, organizations, deployment, verticals and demand across various geographic regions. Following are the details of the sub-segments in the industry:
- Services: System integration, consulting and managed services
- Software: Transform and load, geocoding, analytical, mapping, OLAP and reporting, data integration, query and such other software
- Organizations: Small and medium businesses (SMBs) and large enterprises
- Deployment: On-demand and on-premise deployment
- Applications: Workforce management, operational and sales profitability, risk assessment, situation awareness, marketing and customer management, route monitoring and tracking
- Geography: Latin America, North America, Asia Pacific, Europe and Middle East and Africa
Drivers and Forecasts
Growing demand in the location analytics market is attributed to the new customer perspective towards location-based data and its utilization in business intelligence. Growth in demand for risk and compliance management is also a significant driver for the industry. Shifting focus towards competitive intelligence and market research is also creating the demand for location based information of the customers as well as businesses. Changing perspective of customer support and rising graph of customer satisfaction is also a vital element driving the demand for the market. However, privacy concerns and data integration through low connectivity are considered to be the major restraints for the market.
According to the analysis of the trends, drivers and segments, researchers expect the location analytics market to grow at a healthy growth rate of over 11% from 2014 to 2019. At the estimated growth rate, the industry is anticipated to reach past $11.84 billion by 2019, which is a vital sign for the existing players in the market. As of the year 2014, the industry is worth $6.83 billion in 2014. During the forecasting period, Asia Pacific and Middle East and Africa are expected to witness strongest growth in terms of demand and growth rate. While the APAC region is expected to grow at over 17%, the MEA region is set to record a CAGR of over 14% from 2014 to 2019.