Top Trends in Location-Based Technology for 2023

Over the last decade, geospatial and location-based technologies have steadily moved from niche tools to essential components of modern business and public-sector operations. Organizations across industries now depend on location intelligence to optimize logistics, improve customer experiences, and make data-driven decisions. Solutions such as route optimization, distance matrix APIs, and real-time mapping have become particularly valuable in last-mile delivery and supply chain management.

Market projections reinforce this momentum. According to industry research, the global market for location-based intelligence and analytics is expected to grow from approximately $15.7 billion in 2021 to nearly $30 billion by 2026—an increase of roughly 90% in just four years. This rapid growth underscores the expanding role of geospatial technologies in both commercial and governmental applications.

As adoption accelerates, 2023 marks a pivotal year for innovation in location-based services. Below are five emerging trends that are redefining how organizations leverage geospatial data to operate, plan, and grow.

1. Growing Emphasis on Smart Cities and Urban Development

Smart cities depend on continuous streams of geospatial data to function efficiently. As more urban areas invest in smart infrastructure, the demand for location-based technologies is rising sharply. These systems help cities become more responsive, secure, and sustainable.

Location intelligence supports a wide range of urban applications, including optimizing transportation networks to reduce congestion, enhancing public safety through sensor-driven monitoring, and improving service delivery for waste management and emergency response. Environmental sustainability also benefits, as cities analyze spatial data related to energy usage, traffic flow, and emissions to reduce their ecological footprint.

As smart city initiatives expand worldwide, geospatial technologies will remain foundational to their success.

2. Expansion of 3D Mapping Applications

Advances in 3D scanning, modeling, and visualization have significantly expanded the capabilities of geospatial platforms. Highly detailed 3D maps now support far more than navigation—they are being used for urban planning, spatial analysis, virtual tourism, gaming, and immersive AR/VR experiences.

In city planning, 3D maps enable accurate visualization of population density, land use, and environmental conditions. Planners can simulate development scenarios to assess how new projects might affect surrounding areas. During natural disasters, 3D mapping can assist rescue operations and reconstruction efforts by providing precise spatial context.

As 3D data becomes more accessible, its role in decision-making and visualization will continue to grow.

3. Increased Reliance on Crowdsourced Geospatial Data

Crowdsourced data has become a critical input for modern mapping platforms. Rather than relying solely on official or static datasets, many providers now incorporate real-time, user-generated information to keep maps current and relevant.

This data can include reviews, photos, traffic updates, construction alerts, and reports of changing conditions. Crowdsourcing allows map providers to add new points of interest, update business details, and reflect real-world changes faster than traditional methods.

However, crowdsourced data also presents challenges. Verifying accuracy and filtering unreliable inputs require robust validation processes. While most providers implement review systems, users should remain aware that crowdsourced information may occasionally be incomplete or incorrect.

4. Deeper Integration with IoT and AR/VR Technologies

The rapid growth of connected devices has created unprecedented volumes of location-based data. Internet of Things (IoT) systems—embedded with sensors and communication technologies—generate continuous spatial information that enhances mapping accuracy and service relevance.

Location-based platforms use IoT data to optimize logistics, reduce fuel consumption, improve public infrastructure management, and analyze consumer behavior. For governments, IoT-enabled geospatial data supports efficient energy distribution and smarter public services.

At the same time, augmented and virtual reality technologies are gaining traction. When combined with precise 3D maps, AR and VR enable immersive, location-aware experiences for navigation, training, and entertainment.

5. Advanced Asset Tracking and Management

As supply chains grow more complex, asset tracking has become a top priority for many organizations. Geospatial technologies now play a central role in monitoring vehicles, equipment, and goods in real time.

Custom mapping APIs allow businesses to visualize asset movement, detect unauthorized activity, and optimize transportation routes. Improved visibility enhances security while reducing delays and operational costs. In 2023, location-based service providers are increasingly focused on delivering more granular asset insights, stronger alerts, and greater efficiency across logistics networks.

Looking Ahead

Location-based technologies are no longer optional tools—they are strategic assets. From urban planning and infrastructure to logistics and consumer engagement, geospatial intelligence continues to unlock new possibilities.

As these five trends gain traction, organizations that invest in location-based innovation will be better positioned to adapt, compete, and thrive. The pace of change suggests one thing clearly: the future of geospatial technology is both dynamic and full of opportunity.