Location-based Services Market Segmentation:
Application Segment Analysis
The navigation and route optimization segment is predicted to record around 38.5% share during the forecast period, driven by growth in demand for turn-by-turn and real-time driving guidance for intercity and city travel. For example, TomTom launched its TomTom Traffic Index, providing predictive traffic congestion warnings and dynamic rerouting of city drivers, in January 2025. The technology reduced 9% of average travel time in pilot cities, which speaks volumes about the importance of LBS in the mitigation of traffic congestion in cities. The expansion of the segment is also aided by the proliferation of smart mobility platforms and the expansion of ride-hailing and delivery businesses. As urbanization accelerates and consumers request frictionless travel, the segment will remain at the center of the location-based services (LBS) market growth.
Type Segment Analysis
The mobility segment is predicted to account for an 81.8% share through 2035, reflecting the dominance of smartphones, wearables, and connected cars in LBS adoption. In March 2025, Samsung Electronics introduced sophisticated LBS capabilities onto its Galaxy Watch series to support real-time fitness tracking, emergency calling, and location sharing. The move identifies mobility devices as prime LBS entry points. The trend in the segment is also driven by the roll-out of 5G networks, which offer improved location precision and richer, real-time services. Mobility-based LBS is also expanding fleet management, logistics, and field service applications, where real-time tracking and routing optimization drive operational efficiency.
Technology Segment Analysis
The GPS segment is expected to account for 48% during the forecast period based on its underlying application in global navigation and tracking solutions. In April 2024, Qualcomm released a sub-meter-precise next-generation GPS chipset to markets serving automotive and drone uses. The early adopters realized a 15% rise in delivery precision on logistics vehicles using the new technology. The market growth is also driven by advances in satellite constellations, signal processing, and integration with other location technologies.
Our in-depth analysis of the LBS market includes the following segments:
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