Japan Location-based Services Market Size (2024 - 2029)

Japan Location-based Services Market Analysis

The Japan Location-based Services Market size is estimated at USD 1.97 billion in 2024, and is expected to reach USD 4.37 billion by 2029, growing at a CAGR of 17.29% during the forecast period (2024-2029).

The surge in the overall demand for enterprise and personal navigation services is one of the major factors driving the Japan Location-based Services Market's growth significantly.

• The Japan Location-based Services Market is mainly driven by the increasing deployment of efficient car navigation systems, especially for seamless location-based services. According to the Japan Electronics and Information Technology Industries Association, around 4.4 million car navigation systems were shipped to Japan in 2022. A rise in such shipments will significantly augment the market's growth opportunity.
• Furthermore, Japan has seen a rising trend in terms of using social networking apps and sites. Social media services are a gradually influential means of communication in Japan. People mostly use their smartphones to access social networks, check locational reviews, tag locations, find friends, check in, etc. All these services utilize LBS through the user's smartphone's in-built GPS feature. Hence, a rise in the overall usage of such applications will enhance the market's growth to a great extent.
• On the other hand, Japan is a popular tourist destination and attracts millions of tourists yearly. The location-based services play a significant role in. assisting and guiding tourists in terms of exploring the country. These services offer directions, maps, and information about nearby restaurants, attractions, accommodations, etc., boosting the overall travel experience. According to the Ministry of Economy, Trade and Industry (Japan), in 2022, the total industry activity index for passenger transportation in Japan stood at around 81.4 points, rising from 72 points in the prior year. Such a rise in the overall industry activity index for passenger transportation in Japan will drive the demand for the market's growth exponentially.
• However, factors like a rise in privacy, as well as security-related concerns, might be significant points that can hinder the overall market's growth throughout the forecast period.
• The players in the market are investing in their services to expand their market share. For instance, SoftBank is Japan’s one of the largest mobile carriers. It has roughly 44 million subscribers with an ARPU of about USD41. SoftBank launched the 5G service in 2020 in limited areas of Japan. By 2025, the company plans to invest over USD 1.9 billion to expand its network to roughly 64% of the populated regions of the country. It plans to install 7,355 base stations in the 3.7GHz and 4.5GHz spectrum bands and 3,855 base stations in the 28GHz band.

Japan Location-based Services Industry Segmentation

Location-based services (LBSs) are primarily mobile applications that deliver information based on the location of the device and the user through various mobile portable devices, like smartphones or mobile networks. The precision of the location services mainly depends on the software and hardware used in the mobile communication system.

The Japanese Location-based services market is segmented by component (hardware, software, services), by location (indoor, outdoor), by application (mapping and navigation, business intelligence and analytics, location-based advertising, social networking, and entertainment), by end-user (transportation and logistics, IT and telecom, healthcare, government, BFSI, hospitality, manufacturing). The market sizes and forecasts are provided in terms of value in USD for all the above segments.