How Has the Indoor Location Market Evolved Historically and What is its Current Size?
The indoor location market has seen considerable growth due to a variety of factors.
• The market size of indoor locations has experienced a significant increase in the past few years. It is projected to expand from $14.09 billion in 2024 to $17.53 billion in 2025, showcasing a compound annual growth rate (CAGR) of 24.4%.
The historical growth pace can be tied to the increase in applications powered by beacon and Bluetooth low energy tags, the escalating use of proximity-oriented solutions in retail, the rise of IoT and associated devices like wearable technology and smartphones, and the growing focus on consumer preferences and behaviors.
What Does Future Hold for The Indoor Location Market By 2029?
The indoor location market is expected to maintain its strong growth trajectory in upcoming years.
• Forecasts expect significant expansion in the indoor location market size in the upcoming years. It is projected to escalate to $41.66 billion by 2029, with a compound annual growth rate (CAGR) of 24.2%.
This expected boom during the forecast period is due to factors such as governmental initiatives toward smart cities, the inadequacy of GPS technology within indoor settings, the increasing necessity for navigation, a high demand for precise and instant location services, and the growth in the use of data analytics in retail. Key trends anticipated in the predicted period include technological advancements, incorporation with augmented reality, real-time location systems (RTLS), AR-driven indoor navigations, and cloud-based indoor location contexts.
What Are The Primary Growth Drivers In The Indoor Location Market?
The progress of the indoor location market is predicted to significantly accelerate owing to the escalating use of smartphones. Smartphones, essentially mobile phones with heightened computing powers and connectivity, are typically characterized by internet facilities, touchscreen interfaces, and the capacity to host third-party applications. The augmented use of smartphones can be attributed to their versatility, convenience, advanced technology, thriving app ecosystem, pivotal function in work and academics, and entertainment facets. Smartphones form an integral part of indoor location by exploiting an amalgamation of sensors, wireless technologies, and navigational apps to deliver pinpoint indoor positioning and navigational facilities. For instance, data from Uswitch Limited, a finance authority based in the UK, reveals that in February 2024, mobile connections in the UK expanded to 71.8 million, witnessing a 3.8% growth (around 2.6 million connections) compared to 2021. By 2025, the UK will house 68.3 million residents, with nearly 95% (or nearly 65 million people), expected to own smartphones. Thus, the rising utilization of smartphones is leading to the expansion of the indoor location market.
What Is The Segmentation Of The Global Indoor Location Market?
The indoor location market covered in this report is segmented –
1) By Offering: Hardware, Solutions, Services
2) By Technology: Bluetooth Low Energy (BLE), Ultra-wideband (Uwb), Wi-Fi, Radio Frequency Identification (RFID), Magnetic Positioning
3) By Application: Emergency Response Management, Sales And marketing Optimization, Remote Monitoring, Predictive Asset Maintenance, Supply Chain Management, Inventory Management
4) By Vertical: Retail, Travel And Hospitality, Media And Entertainment, Transportation And Logistics, Government And Public Sector, Manufacturing, Healthcare And Pharmaceuticals
Subsegments:
1) By Hardware: Beacons, Sensors, RFID Tags, Wi-Fi Access Points
2) By Solutions: Indoor Mapping Solutions, Positioning and Navigation Solutions, Indoor Tracking Solutions, Data Analytics Solutions
3) By Services: Installation and Deployment Services, Consulting Services, Maintenance and Support Services, Integration Services
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What New Trends Are Influencing The Indoor Location Market?
Leading organizations in the indoor location markets are introducing innovative solutions like the ArcGIS Indoor Positioning System (IPS) to gain a competitive advantage. ArcGIS IPS is an advanced technology that allows for real-time indoor location services within structures. In July 2022, Esri, an American software firm, introduced the ArcGIS Indoor Positioning System (IPS) to offer real-time indoor location services via the company's ArcGIS Indoors mobile app and customized applications created using the ArcGIS Runtime software development kit (SDKs). Utilizing Bluetooth beacons deployed within the buildings, the ArcGIS IPS gathers radio signals to detect user mobile devices and shows their location as a blue dot on the map. This technology strengthens indoor navigation, provides data capture and analysis for GIS teams, facility foremen, and executives, and aids in managing versatile seating plans and safeguarding in-person employees within hybrid work structures.
Who Are the Key Players In The Indoor Location Market?
Major companies operating in the indoor location market are:
• Apple Inc.
• Google LLC
• Microsoft Corporation
• Cisco Systems Inc.
• Mist Systems Inc.
• Broadcom Inc.
• Hewlett Packard Enterprise Company (HPE)
• Nokia Corporation
• CommScope Inc.
• Secure Energy Services Inc.
• Zebra Technologies Corporation
• Acuity Brands Inc.
• Halma plc
• HERE Global B.V.
• Environmental Systems Research Institute Inc. (Esri)
• STANLEY Healthcare
• Orient Electric Limited
• Polaris Wireless Inc.
• Ubisense Limited
• Inpixon
• Sonitor Technologies AS
• IndoorAtlas Ltd.
• HID Global Corporation
• Quuppa Oy
• InnerSpace Technology Inc.
• AiRISTA Flow Inc.
• Pozyx Labs NV
• Mapxus Limited
• Kontakt.io Inc.
• infsoft GmbH
What Are The Regional Insights Into The Indoor Location Market?
North America was the largest region in the indoor location market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor location market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
