Market Size of Nigeria Location-based Services Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 307.27 Million |
| Market Size (2029) | USD 457.47 Million |
| CAGR (2024 - 2029) | 6.86 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Nigeria Location-based Services Market Analysis
The Nigeria Location-based Services Market size is estimated at USD 307.27 million in 2024, and is expected to reach USD 457.47 million by 2029, growing at a CAGR of 6.86% during the forecast period (2024-2029).
Improved traffic management and navigation services are essential in Nigerian cities with congestion issues. Location-based services that provide real-time traffic updates and route optimization are expected to gain prominence in the coming years, driving market growth.
- Nigeria is undergoing substantial urbanization, with a significant portion of its population moving to cities. Moreover, in 2022, according to the World Bank estimate, around 54% of the 213 million Nigerians live in urban areas. Further, it is projected to rise beyond 70% by 2050. This trend is leading to population concentration in urban areas, creating a demand for location-based services to address urban challenges such as traffic management, logistics optimization, and delivery services. Location-based services play a crucial role in enhancing city living and infrastructure management.
- In addition, the rise of e-commerce and on-demand delivery services in Nigeria is another driving force behind the location-based services market. Consumers expect efficient delivery tracking, accurate location data, and real-time updates when ordering products and services online. LBS enables businesses to meet these expectations and operate efficiently in the digital marketplace.
- Also, location-based advertising and marketing are gaining prominence in Nigeria. Location-based services enable businesses to target consumers with personalized advertisements and promotions based on their current or designated locations, improving marketing return on investment (ROI).
- However, data privacy and security concerns could be potential barriers to Nigeria's location-based services market. Users and businesses may be reluctant to share location data due to privacy worries, potentially limiting the scope of location-based service applications. In addition, as location-based services rely on collecting and processing location data, they can be vulnerable to cybersecurity threats and data breaches. Ensuring robust security measures is essential to build trust among users and businesses.
Nigeria Location-based Services Industry Segmentation
Location-based services can be defined as software services that utilize geographic data and information to provide services or information to users. The application collects geodata, data gathered in real-time using one or more location-tracking technologies, including GPS satellites, cellular tower pings, and short-range positioning beacons.
The Nigeria location-based services market is segmented by location (indoor and outdoor), service type (professional and managed), and end-user industry (transportation and logistics, manufacturing, retail, consumer goods, automotive, healthcare, and other end-user industries). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.
| By Location | |
| Indoor | |
| Outdoor |
| By Service Type | |
| Professional | |
| Managed |
| By End-User Industry | |
| Transportation and Logistics | |
| Manufacturing | |
| Retail and Consumer Goods | |
| Automotive | |
| Healthcare | |
| Other End-User Industries |
Nigeria Location-based Services Market Size Summary
The Nigeria location-based services market is experiencing significant growth, driven by urbanization, the rise of e-commerce, and increased smartphone penetration. As more Nigerians move to urban areas, the demand for services that enhance urban living, such as traffic management and logistics optimization, is on the rise. The proliferation of smartphones, coupled with improved internet connectivity, has made location-based applications more accessible, enabling real-time navigation, delivery tracking, and personalized marketing. These services are becoming integral to businesses aiming to engage consumers more effectively in a digital marketplace. However, concerns regarding data privacy and security pose challenges, necessitating robust measures to build trust among users and businesses.
The transportation and logistics sector is a key area where location-based services are making a substantial impact. These services facilitate supply chain optimization through real-time tracking and monitoring, which is crucial in a country with challenging transportation infrastructure. The growth of e-commerce has also heightened the importance of efficient last-mile delivery solutions. Additionally, the market is semi-consolidated, with major players like Google, Microsoft, Apple, and Uber, alongside local startups, driving innovation and competition. Collaborations and partnerships, such as those between Uber and Sety, and Polaris Digitech Limited with Google Nigeria, highlight the ongoing efforts to enhance service offerings and expand geographic visibility, further propelling market growth.
Nigeria Location-based Services Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Assessment of the Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Location
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2.1.1 Indoor
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2.1.2 Outdoor
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2.2 By Service Type
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2.2.1 Professional
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2.2.2 Managed
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2.3 By End-User Industry
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2.3.1 Transportation and Logistics
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2.3.2 Manufacturing
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2.3.3 Retail and Consumer Goods
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2.3.4 Automotive
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2.3.5 Healthcare
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2.3.6 Other End-User Industries
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Nigeria Location-based Services Market Size FAQs
How big is the Nigeria Location-based Services Market?
The Nigeria Location-based Services Market size is expected to reach USD 307.27 million in 2024 and grow at a CAGR of 6.86% to reach USD 457.47 million by 2029.
What is the current Nigeria Location-based Services Market size?
In 2024, the Nigeria Location-based Services Market size is expected to reach USD 307.27 million.
