China Location-based Services Market Size

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.