China Location-based Services Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.47 Billion |
| Market Size (2029) | USD 5.02 Billion |
| CAGR (2024 - 2029) | 15.22 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Location-based Services Market Analysis
The China Location-based Services Market size is estimated at USD 2.47 billion in 2024, and is expected to reach USD 5.02 billion by 2029, growing at a CAGR of 15.22% during the forecast period (2024-2029).
- The demand for automotive-grade location services is increasing with the penetration of embedded navigation in mass-market vehicles. Mandates for advanced driver assistance systems (ADAS), intelligent speed assistance (ISA) regulation, growth in the ownership of electrified vehicles, and the emergence of automated driving capabilities are the key factors driving demand for location-based services in China.
- According to the Global Navigation Satellite System and Location-Based Services Association of China White Paper on “the 2023 Development of China’s Satellite Navigation & Positioning Industries”, the total output value of the navigation and positioning services in chip, equipment and software, and data and infrastructure industries reached USD 21.4 billion in 2023, an increase of 5.1% from 2021.
- The demand for location-based advertising (LBA) is on the rise in China owing to the popularity of wireless technology and portable internet devices, such as smartphones and tablet computers. This rise in popularity presents opportunities for Chinese location-based advertising developers and advertisers to develop and promote LBA in the Chinese market.
- Furthermore, the increasing focus of several companies on providing new technology-based services is anticipated to drive the market's growth. For instance, China's Luokung Technology Corporation, a big data services company and provider of interactive location-based services and high-definition maps, is actively increasing its AI focus. However, the collection and use of location data raised concerns about privacy and data security in the country. China has implemented data protection regulations, but concerns about enforcing these regulations are challenging the market growth.
- Location-based services were essential to the country’s contact-tracing efforts during the pandemic. Applications using location data helped the government identify and isolate potential virus carriers. However, the country's location-based services market presents opportunities for innovation and growth. The market is expected to continue evolving in the post-pandemic era, adapting to changing user needs, data privacy concerns, and the integration of emerging technologies.
China Location-based Services Market Trends
Rising Adoption of Smartphones
- The continued growth of smartphone ownership and internet penetration are the major driving forces behind the demand for location-based services (LBS) in China. As more and more people in China have access to mobile phones and the internet, they are increasingly using these devices to access LBS apps and services.
- According to a survey conducted by a national population and development forum in 2022, half of China's population aged 65 to 69 use smartphones. Furthermore, 31.2% of the 70 to 79 age group and 1.3% of the 100 and older age group use smartphones. In recent years, internet penetration has been driven by the expansion of broadband infrastructure and the increasing availability of affordable internet plans.
- The increasing adoption of mobile devices has led to a growing demand for location-based services among consumers and businesses. For instance, consumers increasingly use LBS apps to navigate, find nearby places, and order food and other goods online. Also, businesses use LBS apps to track their assets, optimize their operations, and engage with customers through location-based advertising.
- With the growing use of smartphones, location-based services are rapidly emerging in the country. They are increasingly being used to locate the nearest locations, advertise deals to nearby shoppers, give users access to up-to-date information, and allow businesses to inform their customers about order updates. The demand for location-based services is increasing in China, as all these LBS applications offer a dynamic user experience, providing a convenient way for business enterprises to interact with customers.
The Mapping and Navigation Application is Expected to Contribute Major Share
- Rapid urbanization and ongoing infrastructure development are propelling the need for accurate and up-to-date maps for efficient navigation in cities and regions that are continuously evolving. Furthermore, with a significant increase in smartphone penetration, more users have access to location-based applications and services on their mobile devices, driving the demand for mapping and navigation services in the country.
- The rapid growth of the e-commerce industry in China is increasing demand for mapping and navigation services, as location data is fundamental for e-commerce companies to optimize delivery processes, enhance customer experience, and facilitate the efficient functioning of e-commerce operations, leading to the growth of location-based services in China.
- In February 2023, NavInfo, a Beijing-based smart mobility services provider, signed a license agreement with BMW Group to provide ADAS and high-definition maps and location-based services (LBS) for autonomous driving functions in the Chinese market. The cooperation between the companies is expected to help BMW accelerate the mass production of high-end automatic driving functions and more projects for NavInfo.
- Moreover, big data services companies and providers of interactive location-based services and high-definition maps are increasingly focusing on AI. For instance, Luokung Technology Corp. acquired eMapgo, integrating its operations and personnel with that of Luokung. With this acquisition, Luokung built an R&D team to support the development of self-driving perception algorithms, Internet of Vehicles, big data, AI algorithms, application services, and LBS platform services. This indicates that the need for LBS-based mapping and navigation services by the automotive industry in China is rising, and to cater to this need, technology solutions providers are capitalizing on these opportunities.
China Location-based Services Industry Overview
The Chinese location-based services market is moderately consolidated and is characterized by a mix of domestic and international players offering services in the country. The market players, including Telenav Inc., Alibaba Cloud (Alibaba Amap), Here Technologies, TomTom International BV, and Zebra Technologies Corp., are undergoing strategic initiatives like mergers, acquisitions, partnerships, and product launches, to expand their customer base and mark their presence in the market.
- In September 2023, Amap, a maps application operated by Chinese e-commerce giant Alibaba Group Holding, expanded its coverage to overseas territories using China’s home-grown Beidou satellite navigation system, advertising its service as a world atlas for Chinese people. This digital map supports route planning and navigation in more than 200 countries and regions after an upgrade.
- In September 2022, Luokung Technology Corp., a spatial-temporal intelligent big data service company and provider of interactive location-based services in China, announced that the company's operating affiliate, eMapgo Technologies (Beijing) Co. Ltd. eMapgo Technologies is a leading service provider of navigation and electronic map in China. The Ministry of Transportation approves it as the first intelligent service provider of transportation pilot applications to form the technical guidelines and industry standards based on pilot applications of V2X autonomous trucking on open highways.
China Location-based Services Market Leaders
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Telenav Inc.
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Alibaba Cloud (Alibaba Amap)
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Here Technologies
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TomTom International BV.
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Zebra Technologies Corp.
*Disclaimer: Major Players sorted in no particular order
China Location-based Services Market News
- August 2023: The Chinese government revealed the "2023 edition of the standard map of China," confirming its territorial claims over disputed regions. Following the release of the standard map for public use, the Ministry of Natural Resources was also expected to release digital maps, navigation, and positioning for use in various fields, such as location-based services, platform economy, precision agriculture, and intelligent connected vehicles.
- December 2022: According to the Beijing Institute of Space Science and Technology Information, China's BeiDou navigation satellite system (BDS) became one of the key guidance service providers for domestic Gaode Map. The company outpaced GPS in becoming a navigation service provider. Gaode Map used BeiDou satellites to make more than 210 billion positioning calls daily. The combination of BDS and map navigation provides better public services.
China Location-based Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Technological Advancements and Supportive Government Initiatives
5.1.2 Increasing Importance of Location Analytics
5.2 Market Restraints
5.2.1 High Cost of LBS Solutions and Privacy Concerns
6. MARKET SEGMENTATION
6.1 By Component
6.1.1 Hadware
6.1.2 Software
6.1.3 Services
6.2 By Location
6.2.1 Indoor
6.2.2 Outdoor
6.3 By Application
6.3.1 Mapping and Navigation
6.3.2 Business Intelligence and Analytics
6.3.3 Location-based Advertising
6.3.4 Social Networking and Entertainment
6.3.5 Others
6.4 By End User
6.4.1 Transportation and Logistics
6.4.2 IT and Telecom
6.4.3 Healthcare
6.4.4 Government
6.4.5 BFSI
6.4.6 Hospitality
6.4.7 Manufacturing
6.4.8 Others
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Telenav Inc.
7.1.2 Alibaba Cloud (Alibaba Amap)
7.1.3 Here Technologies
7.1.4 TomTom International BV
7.1.5 Zebra Technologies Corp.
7.1.6 Luokung Technology Corp.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Location-based Services Industry Segmentation
Location-based services (LBSs) are computer or mobile applications that provide information based on the device's location and the user, primarily through portable devices, such as smartphones and mobile networks. The precision of the location services primarily depends on the hardware and software used in the mobile communication system, along with the positioning server.
The Chinese location-based services market is segmented by component (hardware, software, and services), location (indoor and outdoor), application (mapping and navigation, business intelligence and analytics, location-based advertising, and social networking and entertainment), and end user (transportation and logistics, IT and telecom, healthcare, government, BFSI, hospitality, and manufacturing). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | |
| Hadware | |
| Software | |
| Services |
| By Location | |
| Indoor | |
| Outdoor |
| By Application | |
| Mapping and Navigation | |
| Business Intelligence and Analytics | |
| Location-based Advertising | |
| Social Networking and Entertainment | |
| Others |
| By End User | |
| Transportation and Logistics | |
| IT and Telecom | |
| Healthcare | |
| Government | |
| BFSI | |
| Hospitality | |
| Manufacturing | |
| Others |
China Location-based Services Market Research FAQs
How big is the China Location-based Services Market?
The China Location-based Services Market size is expected to reach USD 2.47 billion in 2024 and grow at a CAGR of 15.22% to reach USD 5.02 billion by 2029.
What is the current China Location-based Services Market size?
In 2024, the China Location-based Services Market size is expected to reach USD 2.47 billion.
Who are the key players in China Location-based Services Market?
Telenav Inc., Alibaba Cloud (Alibaba Amap), Here Technologies, TomTom International BV. and Zebra Technologies Corp. are the major companies operating in the China Location-based Services Market.
What years does this China Location-based Services Market cover, and what was the market size in 2023?
In 2023, the China Location-based Services Market size was estimated at USD 2.09 billion. The report covers the China Location-based Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Location-based Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Location-based Services Industry Report
Statistics for the 2024 China Location-based Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Location-based Services analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
