Market Trends of South Korea Location-based Services Industry
Mapping and Navigation to promote the market growth
- Growing demand for mapping and navigation for tracking goods in the industrial sector propels the demand for location-based services in South Korea. Modern locating systems rely on combinations of RFID and beacon technologies. Radio-frequency identification (RFID)-based mapping and navigation utilizes RFID tags for path planning and topological relation maps. Mapping and intelligent navigation is gaining widespread importance in South Korea for robotic applications in various industry verticals.
- A recent GSMA report highlights the subscriber and technology trends in South Korea, indicating that the country's subscriber penetration and smartphone adoption is anticipated to grow to 96% by the end of the decade. Such data suggests an increase in the location-based services demand for mapping and navigation during the forecast period.
- The country is witnessing a high demand for wireless communications networks to locate an IoT device. Most IoT locating systems rely on GPS or cellular location services for connectivity. The high cost of cellular connectivity has led to the increased adoption of Wi-Fi location services among enterprises. Unlike RFID-based location systems, Wi-Fi positioning does not require additional hardware since most buildings have Wi-Fi access, which is anticipated to boost its demand more than GPS or cell-tower triangulation.
- South Korea is witnessing a rising demand for location-based services for indoor applications. Wi-Fi signals pass through walls. Access points are usually indoors, and Wi-Fi fingerprints offer more accurate location data than cellular triangulation. Additionally, advantages such as using less power and less drain on batteries will propel the demand for Wi-Fi location services.
- Many market players in South Korea are introducing apps that provide navigation services in English that foreign residents and tourists may find useful. The Seoul subway service operator Seoul Metro recently launched the English version of its mobile app, Seoul Subway. It provides real-time data and a basic map of the Seoul Metropolitan Subway, the rapid transit service for Seoul and its surrounding areas.
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Location Based Services for Retail to Hold a Significant Market Share
- In South Korea, retailers are incorporating advanced technologies into specialized apps that tap into customers' locations, showing them relevant information and providing directions in-store. Location-based services (LBS) incentivize consumers to enter physical retail stores and streamline their experience. Location-based services provide many opportunities for retailers, gaining rapid adoption to create a cross-channel environment. Accessible and user-friendly technology, such as Wi-Fi access points to bring all technologies into a single network infrastructure, is witnessing massive growth.
- As the use of mobile is increasing rapidly in the country, marketers have a unique opportunity to reach customers in real-time and captivate them with creative advertising that offers them the chance to interact with their favorite brands. Location-based services are a great way to drive in-store traffic, and retailers keep their offers simple by utilizing things like check-ins and offering valuable discounts.
- Last year, Apple previewed Apple Myeongdong, its largest store in South Korea. This new space will invite customers to discover Apple's latest products. With the opening of the new retail center, the company aims to deepen its relationship with South Korean customers. This is anticipated to create a new demand for location-based services.
- The Ministry of Trade, Industry, and Energy (MOTIE) recently announced that Korea's retail sales achieved an overall growth of 6.4 percent in March this year. Offline and online sales expanded by 6.6 percent and 6.1 percent, respectively. Department store chains, hypermarket chains, convenience store chains, and "super supermarket" (SSM) operators witnessed a surge in sales. The growth is attributed to factors including increasing spring season outdoor activities and growing demand for cosmetics and fashion.
- The rapid growth of the omnichannel retail industry and e-commerce sector in South Korea has increased the demand for third-party logistics and transportation in the retail supply chain. LBS, such as asset tracking and management, is growing in demand from organizations transporting different equipment, supplies, and materials from one site to another or over long distances.
- According to The Mobile Economy Asia Pacific report, various industry verticals such as ICT, manufacturing, retail, and services sectors in South Korea are expected to benefit by incorporating 5G use cases in businesses. The pandemic increased the demand for e-commerce due to the country's changing consumer consumption patterns. As a result, the need for efficient location-based services and warehouse management systems in the South Korean retail sector has massively increased.
