A location-based service (LBS) is a network service for mobile device applications that use IP addresses and real-time geodata and inform where the mobile device is geographically located. The application collects geodata, which is data gathered in real-time using one or more location tracking technologies.

Location-based services have revolutionized the way businesses interact with their consumers by providing location-aware services and offers. With the ability to track the real-time location of users, businesses in the location-based services market are focusing on tailoring their services to meet the specific needs of end consumers, improving customer satisfaction and loyalty.

The above-mentioned have been the key reasons for uplifting the Location-Based Services Market. According to a research report by Astute Analytica, the Location Based Services Market will report a CAGR (Compound Annual Growth Rate) of 24.2% during the forecast period of 2023-2031.  

How Do Location-Based Services Work? 

There are a number of ways in which the location of an object, such as a mobile phone or device, can be determined. Another emerging method for confirming location is IoT and blockchain-based relative object location verification.

One method for determining the geographic location of a mobile user is with the use of the mobile phone network and the cell ID, which can pinpoint the location of the base transceiver station. 

Another method is the use of GPS satellites, which is a more accurate method as many smartphones are built with GPS receivers. Short-range positioning beacon location-based services, such as Wi-Fi or Bluetooth location-based services, may also be used to geolocate mobile users using indoor location-based services.

Once the geographic location of a user has been determined, mobile app location-based services are categorized as push-based, such as marketing information being displayed to a user based on their location, or pull-based, in which the user requests location-based information, such as querying "restaurants open near me." 

Applications of Location-Based Services 

Although, the applications of location-based services are many the types on which these applications are based are only four. These types are maps and navigation, tracking services, information services, and mobile applications.

Assistive healthcare systems, contextualizing learning, and research, location-based mobile advertising, querying the nearest business, recommending nearby social events, receiving alerts, recovering stolen assets with active RF, tracking a NASA lunar lander, tracking people on a mobile map application, turn-by-turn navigation, etc. are the applications based on location-based services.

Some popular location-based mobile apps include Waze, Google Maps, Trip Advisor, Lyft, Uber service, Instagram, Pokémon Go, Dark Sky, Curbside, Target, Gas Buddy, Snapchat, and WhatsApp.