The Internet of Things (IoT) continues to reshape nearly every industry, making operations more efficient, increasing productivity, and even saving lives. For many industries, IoT solutions that take advantage of Location-Based Services (LBS) are delivering the most value.
LBS capabilities enable organizations to track the location of assets and people to deliver information that helps make informed business decisions, and the rise of LBS technology is creating new opportunities for value-added resellers and other businesses to build and sell LBS products and services. For many organizations who may lack internal expertise or experience with LBS technologies, there are the four essential steps to successfully seize this opportunity.
Step 1: Understand the Market for Location-Based Services
The market for LBS solutions is growing rapidly, and is expected to grow at approximately 27% compound annual growth rate (CAGR) through 2022 when it is forecasted to be worth $60.1 billion. This growth is primarily driven by the need for organizations to improve operational efficiencies, adhere to regulatory policies, and enhance worker safety through location-based solutions. Selling LBS solutions provides service-based, recurring revenue opportunities, flexible avenues for market penetration, and dynamic services for adjacent market penetration.
Step 2: Select a Target Market
Each industry has different needs when it comes to LBS solutions. As a result, VARs and IoT solution providers often experience the most success when focusing on a targeted vertical market. Some of the most significant opportunities exist in the following sectors:
Once you have a clear understanding of which market segment are most attractive, you can begin to consider what your LBS offering will provide and how to implement the required technologies.
Step 3: Evaluate Your Technology Requirements
Regardless of the target market and LBS product you choose to offer, there are several key technology components needed to deploy an LBS offering:
Step 4: Partner for Success
Locate an LBS solution partner that can help determine the functionality needed to serve your target market, assist in building a comprehensive strategy, and provide the technology components you will need.
Use the following questions to help guide your due diligence in selecting an LBS partner:
With the right strategy in place, you will be well positioned to fully capitalize on the emerging opportunity to sell LBS solutions. For more information on how to add LBS solutions to your portfolio and get to market quickly, download our eBook: Getting Started with Location-Based Services.