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

The Nigeria Location-based Services Market is experiencing growth driven by urbanization, the rise of e-commerce, and the need for improved traffic management and navigation services. As more Nigerians move to urban areas, the demand for services that address urban challenges such as traffic and logistics optimization is increasing. Additionally, the growth of on-demand delivery services is pushing businesses to adopt location-based services to meet consumer expectations for efficient tracking and real-time updates. Location-based advertising is also becoming more prominent, allowing businesses to target consumers effectively. However, concerns over data privacy and security pose challenges to the market's expansion, as both users and businesses may hesitate to share location data due to these issues.

Home Market Analysis Technology, Media and Telecom Research Information Technology Research Nigeria Location-based Services Market Market Size

Market Size of Nigeria Location-based Services Industry

Nigeria Location-based Services Market Summary
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

Nigeria Location-based Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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
Need A Different Region Or Segment?
Customize Now

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.

Explore More

Nigeria Location-based Services Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Location

      1. 2.1.1 Indoor

      2. 2.1.2 Outdoor

    2. 2.2 By Service Type

      1. 2.2.1 Professional

      2. 2.2.2 Managed

    3. 2.3 By End-User Industry

      1. 2.3.1 Transportation and Logistics

      2. 2.3.2 Manufacturing

      3. 2.3.3 Retail and Consumer Goods

      4. 2.3.4 Automotive

      5. 2.3.5 Healthcare

      6. 2.3.6 Other End-User Industries

Nigeria Location-based Services Market Size FAQs

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.

In 2024, the Nigeria Location-based Services Market size is expected to reach USD 307.27 million.

Nigeria Location-based Services Market Report Snapshots

Nigeria Location-based Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)