Indoor Location Market

[324 Pages Report] The indoor location market is projected to grow from 11.9 billion in 2024 and reach USD 31.4 billion by 2029, at a CAGR of 21.4% during the forecast period. It is a direct result of the increased uptake of smartphones, connected devices and applications that incorporate location. The rising number of applications based on beacons and BLE tags, the rising integration of the beacons into the cameras, LED lighting, POS devices, and signages, and the ineffectiveness of GPS in indoor location are expected to contribute to the growth of the indoor location market. This solution enables the user to flag inventories of high value for example wheelchairs so that when the personnel is seeking for the inventory, it will be easier to find it. Also, with the advancement in the usage of 5G network for location-based services and rising significance of Industry 4. Smart home, smart city initiatives, and smart manufacturing are expected to offer a massive chance for the indoor location market in the future. The public offices and hospitals’ infrastructure using RFID tags, BLE beacons, and Wi-Fi for the need and utilization of the indoor location technologies would enhance the absorption of the information if the location of the objects and people is effective. To further improve the current freedom of operation that happens within hospitals, many firms dealing in indoor location services provide asset tracking services to find the hospitals’ assets.

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IMPACT OF AI/GEN AI ON INDOOR LOCATION MARKET

Generative Al is revolutionizing the indoor location market as it transforms the ways organizations and industries experience and manage indoor spaces. It suggests improved accuracy in mapping and navigation, providing better services and operation organization through individual customers’ optimizing. Organizations would be in a position of being able to run their business effectively, cut on the expenses that could be incurred in the process of outsourcing while at the same time getting considerable understandings about the customers. Nonetheless, it is also accompanied by problems like data privacy and protection, amongst others, that calls for strong security systems. With regard to generative AI, the development does not stop at making the overall process more efficient, but it becomes a resource for generating innovations, contributing to market development and defining new standards in the functioning of indoor location services.

Indoor Location Market Dynamics

Driver: The profileration of smartphones, connected devices and location based applications

Indoor location market has rapidly emerged due to the increased use of the smartphones, connected devices, and applications that are linked to a specific location. As today most people own a smartphone which is equipped with a set of sensors such as GPS, Wi-Fi, and Bluetooth, smartphones offer a suitable application environment for exact indoor positioning that is often required. Also, the ever-evolving growth of associated devices and the Internet of Things or IoT has also helped push this market forward since many of the wearable devices like smartwatches, Fitbit or other fitness trackers contain location tracking as one of the features. Indoor positioning and navigation, asset management, and location-based marketing are some of the hot applications that are being required in almost all industries including retail & consumer goods, healthcare, industrial & manufacturing, and etc. Indoor positioning systems were also developed with new technologies like Bluetooth Low Energy (BLE) beacons and ultra-wideband (UWB). Also, consumers seem to desire similar indoor location services without much difference from the ones they receive outside, thus promoting the application of these technologies. Indoor location systems also generate interesting information regarding users’ behaviour and the usage of available spaces, which can help businesses improve the clients’ experiences and their own functioning.

Restraint:Concerns related to data security and privacy

Lack of data privacy and security are among the key factors that restrain the indoor location market. With these technologies, there is concern about how this large amount of information about the individuals’ location is collected, stored and even utilized. The population is becoming more sensitive to possible collection of their personal data by other parties, this has lead to pressure towards organizations to provide more information on how they are using the collected data. Being a global concept legal frameworks like General Data Protection Regulation GDPR in Europe, the California Consumer Privacy Act CCPA in the United States and others that have come into force have stringent guidelines about the usage of cookies, user consent, and other measures to safeguard users’ data. Following these regulations may not be easy and is often costly especially to the small businesses. In addition, the privacy risk related to the sharing of location information is also a problem because breaches of such data can be legally and commercially costly to organizations. Some of the privacy and security issues are likely to hinder or slow the use of indoor location technologies because businesses and consumers are likely to avoid the solutions altogether when they do not have a guarantee for the protection of their data.

Opportunity: Increasing demand for RFID tags across the retail industry

The demand for RFID tags has grown within the retail industry, which represents a key opportunity for the future development of the indoor location market. RFID aids in the real-time tracking of stocks in the retail trade, consequently disclosing exact positioning of products in shops to help in the management of stocks and shopping experiences. Applying RFID tags together with indoor positioning system allows to introduce higher distinctiveness in the item’s location, lower stock shrinkage rates due to lost finding of misplaced items, and improve the efficiency of restocking. However, RFID tags help in efficient collection of data and provide analytic solutions for the movement of products across the customer and the store layout with tools for optimized placement and target marketing. The integration of RFID and other indoor location solutions can also enable sophisticated uses such as automated check out, shoplifting detection, and automated stock taking which lowers the expenditures and enhance productivity.

Challenge:Lack of skill and awareness

The limited skill and awareness is a significant challenge for the indoor location market as many companies and potential users are not familiar with the advantage and applications of indoor positioning systems or lack the ability to deploy and use these technologies efficiently. This lack of knowledge and skills concerning the capabilities of these solutions creates uncertainty in implementing the indoor location solutions since the organizations may not fully appreciate the potential benefits in operations, customer satisfaction or efficiency gains. Moreover, implementing and maintaining indoor positioning systems can be quite challenging, and some technical competencies are needed, such as the knowledge of wireless communication and data analysis alongside system integration. The market is also suppressed by the lack of properly qualified personnel who would be able to both organize and implement these systems. Small firms or establishments or where there is general lack of capital might find it really hard to afford the expenses used for training or hiring qualified personnel, which makes it even worse.

Indoor Location Market Ecosystem

Prominent companies in this market include a well-established, financially stable provider of indoor location hardware, solutions, and services. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Zebra Technologies (US), Cisco (US), Google (US), Microsoft (US), and HPE (US).

Based on services, the managed services segment is expected to register a higher CAGR during the forecast period.

Managed services are crucial to indoor location tracking since they offer support and knowledge regarding the execution and the constant maintenance of the structures and systems used in the process. It includes the development of the solution architecture, the implementation of the solution, the configuration of the solution, and the maintenance of the indoor location tracking solution. Outsourcing the service delivery for the tracking system entails professional input, surveillance, and constant support from the managed service providers to guarantee the program's efficiency. Managed services can offer all necessary skillfulnesses to sustain and enhance solutions, which is not unimportant in the indoor location or positioning environment.

By technology, Bluetooth Low Energy (BLE) technology is expected to hold the largest market size during the forecast.

BLE technology is today widely used in indoor location and positioning systems because it is more effective and cheaper. BLE beacons are small devices which transmit identifiers, mounted at the certain points in the building and can point out the location of BLE equipped devices, the examples are smartphones and tags. To get more adequate and refined data, several beacons’ signal strength can analyzed or by using such math methods like triangulation or trilateration. In terms of location fingerprinting, signal strengths at various locations are matched to provide a very efficient positioning system. Some of the applications using BLE technology include; retail marketing and advertisement, asset tracking, indoor navigation, and security.

Based on vertical, the retail segment is expected to hold the largest market size during the forecast.

To improve the consumer experience, retailers must manage their customer data. Retailers boost sales through offline and digital marketing. But, companies frequently lack the tools necessary to interact with consumers while they are in their stores or just passing by at the crucial moment. Sales are increased and the shopping experience is improved with a good mall navigation program. Accurate information about visitor flows within a property is provided by location analytics. Customer experience would improve if location-based marketing apps were used to promote product sales in order to boost profits and revenues.

Based on region, North America is expected to hold the largest market size during the forecast.

Owing to the propensity of people to accept technology and the market presence of the key players, North America is expected to occupy the largest share of the indoor location market in the forecast period. The key markets in creating smart cities are the USA and Canada, as these countries have seen large investments in recent years. To enhance individuals and property identification in large structures, companies, especially those in the US, have resorted to indoor navigation and tracking solutions. Using BLE, Wi-Fi, UWB, or any other technologies is projected to help the vendor sector in North America grow. Therefore, companies such as Zebra Technologies, Inpixon, Apple, and Microsoft have released indoor location solutions and services due to growing customer demand for indoor maps and technical imperfections of indoor GPS.

Market Players:

The major vendors in this market include Zebra Technologies (US), Cisco (US), Google (US), Microsoft (US), and HPE (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their footprint in the indoor location market.

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Scope of the Report

This research report categorizes the indoor location market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Hardware
  • Beacons
  • Tags
  • Sensors
  • Fixed RFID Readers
  • Other Hardware
    • Gateways
    • Wi-Fi Access Points
• Solutions
  • Indoor Tracking
    • Asset and People Tracking
    • Indoor Location Analytics
  • Indoor Navigation
  • Database Management System
• Services
  • Professional Services
    • Training and Consulting
    • Support and Maintenance
    • System Integration and Implementation
  • Managed Services

Based on Application:

• Emergency Response Management
• Sales and Marketing Optimization
• Remote Monitoring
• Predictive Asset Maintenance
• Supply Chain Management
• Inventory Management
• Other Applications

By Technology:

• BLE
• UWB
• Wi-Fi
• RFID
• Magnetic Positioning
• Other Technologies

By Vertical:

• Retail
• Travel and Hospitality
• Media and Entertainment
• Transportation and Logistics
• Government & Public Sector
• Manufacturing
• Healthcare & Pharmaceuticals
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East and Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In May 2024, Microsoft announced the unification of enterprise maps offerings under Microsoft Azure Maps to enable customers to do more with location-based services. Microsoft combined the technologies and data in Bing Maps for Enterprise with Azure Maps and retired Bing Maps for Enterprise. Azure Maps introduced several features not found in Bing Maps for Enterprise, including advanced service authentication methods, data residency compliance, geolocation, weather information, and custom indoor maps.
• In May 2024, ArcGIS Indoors extended ArcGIS into an indoor geographic information system (indoor GIS) that enhances facility management and maintenance, safety and security, and building occupant/visitor experience. It enables the creation of interactive digital indoor maps, wayfinding, location sharing, and space planning and management to streamline operations.
• In April 2024, HPE launched Wi-Fi 7 access points (APs) that provide up to 30% more capacity for wireless traffic than competitive products. The new APs also strengthen network security and improve location-based services to provide connectivity for demanding enterprise AI, Internet of Things (IoT), location, and security applications.
• In April 2024, Inpixon announced the launch of its newest smart tag module, the Inpixon Swarm UWB V3, supporting a range of indoor location applications, including RTLS, ranging for proximity detection and collision avoidance, and two-way data communication.?The tag module operates in conjunction with Inpixon RTLS anchors and the full-stack Inpixon RTLS platform.
• In September 2023, Zebra Technologies partnered with the Minnesota Vikings to capture player and ball data for each of the Vikings’ practice sessions this season. With its RFID tracking technology, Zebra Technologies uncovers insights that inform game plans, evaluate player performance, and contextualize player health and safety.

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