Location-based Ambient Intelligence Market Size & Share, by Component (Virtual Reality, Hardware, Software, Wearables, mHealth, Smart Homes, Lighting Controls, Security & Access Control, HVAC Controls, Entertainment Controls); Technology (Bluetooth Low Energy, RFID, Sensors Ambient Light Sensor, Software Agents, Affective Computing, Nanotechnology, Biometrics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5582
  • Published Date: Jan 29, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Location-based Ambient Intelligence Market size is expected to cross USD 3687 Billion by the end of 2036, growing at a CAGR of 23% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of location-based ambient intelligence was over USD 250 Billion. The quantity of linked devices that can be included in an ambient intelligence ecosystem has expanded with the rise of internet-connected IoT devices. AI technology has the capacity to evaluate the massive volumes of data produced by these gadgets and offer insights that could be applied to enhance user experience and increase environment responsiveness. It is projected that by 2030, there will be over 29 billion Internet of Things (IoT) devices globally, nearly doubling from 15.1 billion in 2020. By 2030, China will have more consumer IoT devices than any other nation, with an estimated 8 billion in use.

In addition to these, COVID-19 has brought attention to the significance of ambient intelligence applications in healthcare, including patient support and remote monitoring. The use of software agents has increased since the COVID-19 pandemic. Many patients were looking for remote healthcare services in order to prevent being exposed to the virus as a result of the social distancing measures being put in place. By offering remote medical care at a lower cost than in-person visits to healthcare institutions, affective computing contributes to the reduction of healthcare service costs.

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Location-based Ambient Intelligence Market: Key Insights

Base Year


Forecast Year



~ 23%

Base Year Market Size (2023)

 ~ USD 250 Billion

Forecast Year Market Size (2036)

 ~ USD 3687 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Location-based Ambient Intelligence Market: Growth Drivers and Challenges


Growth Drivers

  • Growing Interest in Energy-Efficient Technologies- Growing consumer awareness of energy conservation and a preference for more energy-efficient home systems and solutions are driving the location-based ambient intelligence industry. Smart home systems allow users to manage every gadget linked to their network. For example, schedules and temperature controls in programmable homes can save energy consumption. Consumers usually have trouble setting up their houses to take advantage of these benefits. Smart homes that are connected to a home Wi-Fi network come with easy-to-use apps that provide additional remote-control convenience, which is driving a significant increase in location-based ambient intelligence market growth. Globally, there are thought to be 300 million smart houses. In 2023, 60.4 million households in the United States were actively using smart home devices.
  • Increasing Use of AML- AML technology facilitates human-machine interaction and improves performance and efficiency. For example, AML allows the system to detect when a user is not there and to save energy when the system is not in use. The growing need for cost- and energy-effectiveness is driving the development of smart spaces and cities, which will drive the ambient intelligence industry. The location-based ambient intelligence market is expanding because of the increasing use of smart technology, self-driving cars, nanotechnology, and growing investments in ambient intelligence by developing countries. The demand for the industry is being driven by the growth of location-based mobile software applications.
  • The Increasing Usage of mHealth and Mobile Devices- The increasing number of individuals possessing smartphones, tablets, and other mobile devices has prospects for rapid expansion. The use of mHealth in the management of chronic care to assist complex populations is growing. The trend toward outcome-based delivery and a patient-centric approach is also contributing to the rapid growth of the need for mHealth to revolutionize healthcare. The location-based ambient intelligence market is pushed by the major manufacturers creating better health-oriented smart gadgets, even in the face of growing public awareness of healthcare issues and the growing use of mobile devices and fitness trackers. It is expected that this will enable clients to provide the healthcare sector with their application development services.


  • Lack of privacy and a heavy reliance on AI could prevent location-based ambient intelligence market growth- Although artificial intelligence is becoming more prevalent in intelligent and sophisticated places, relying too much on it can invade your personal space. Because ambient intelligence may not include encryption, security, or privacy features, this could further impede location-based ambient intelligence market growth. Everything is tracked by AI, and privacy is non-existent.
  • Significant obstacles to the widespread adoption of location data collecting and use are the privacy issues and regulatory challenges involved with it.
  • Ambient intelligence systems may not operate smoothly due to technological issues with location-based services' accuracy and dependability in a variety of settings, including cities.

Location-based Ambient Intelligence Segmentation

Technology (Bluetooth Low Energy, RFID, Sensors Ambient Light Sensor, Software Agents, Affective Computing, Nanotechnology, Biometrics)

With the biggest revenue share of 25%, the affective computing category is anticipated to hold a dominant position in the location-based ambient intelligence market going forward. Developing systems that can precisely identify and interpret human emotions has become more feasible with the advancement of more potent CPUs, sensors, and machine learning algorithms. This has made it possible to include affective computing into ambient intelligence. In all, 72% of the businesses that responded to the survey said they were using or developing machine learning applications. The value of emotional intelligence is becoming more widely acknowledged in a variety of industries, such as customer service, education, and healthcare. Systems that are more sensitive and sympathetic to the emotional requirements of their users can be developed with the aid of affective computing. The goal of creating gadgets that are more sensitive and flexible in order to better meet the individual needs of users is driving the segment growth.

End-User (Residential, Retail, Healthcare, Industrial, Office Building, Automotive)

The healthcare segment in the location-based ambient intelligence market is attributed to hold the largest revenue share 35% during the forecast period. Globally, sensors, ambient aided living (AAL) systems, and remote patient monitoring (RPM) applications are becoming more and more common. The market is expanding due to growing consumer knowledge of health systems and solutions including mobile health apps and electronic medical records. Seventy percent of Americans favour remote patient monitoring, and of those who do, forty percent mention its integration into medical care, according to a June 2021 MSI International survey.

Our in-depth analysis of the global location-based ambient intelligence market includes the following segments:


  • Virtual Reality
  • Hardware
  • Software
  • Wearables
  • mHealth
  • Smart Homes
  • Lighting Controls
  • Security & Access Control
  • HVAC Controls
  • Entertainment Controls


  • Bluetooth Low Energy
  • RFID
  • Sensors Ambient Light Sensor
  • Software Agents
  • Affective Computing
  • Nanotechnology
  • Biometrics


  • Residential
  • Retail
  • Healthcare
  • Industrial
  • Office Building
  • Automotive

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Location-based Ambient Intelligence Industry - Regional Synopsis

North American Market Forecast

North America location-based ambient intelligence market is expected to hold 30% of the revenue share during the forecast period and is expected to maintain this position for the foreseeable future. The United States' adoption of sophisticated technologies and current technological integration are the main causes of the region's supremacy, as a result, the market in this region has the largest share among all other regions. The area's need for smart home products is being driven by the existence of these companies and growing consumer awareness of energy conservation. According to the International Energy Agency (IEA), US energy infrastructure spending would increase by 10.0% in 2021. Furthermore, the region's need for smart energy has grown dramatically over the last few years, drawing investors to the energy management industry.

APAC Market Statistics

Location-based ambient intelligence market in the Asia Pacific region is anticipated to hold second largest revenue share of about 27% during the forecast period. The growth of the market in this region is because of advancements in technology and consumers' strong desires to employ more advanced artificial intelligence. In Asia-Pacific, edge deployments are expanding at a rate four times faster than that of digital core projects. It is projected that the global infrastructure edge footprint will reach 40.0 gigatons by 2028, with 63.0% of that support going to the business, transportation, manufacturing, energy, and healthcare sectors.

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Companies Dominating the Location-based Ambient Intelligence Market

    • Infosys Limited
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Huawei Technologies Co., Ltd.
    • Cherry Labs
    • Honeywell International Inc.
    • Vita Group Holdings Limited
    • Nuance Communications, Inc.
    • Microsoft Corp
    • HTC Corporation
    • Schneider Electric


In The News

  • Cherry Labs announced receiving a grant from the National Institutes of Health (NIH) to study the possibilities of using its AI-driven Cherry Home technology to help maintain independence for older adults. Cherry Home helps support frail/ cognitively impaired older adults to age safely in their homes. Using ambient intelligence, Cherry Home unobtrusively and with privacy protections monitors for potential emergencies and measures the daily living activities of seniors in their homes. The gathered data helps clinicians and caregivers know if additional support is needed before it's too late and clinical deterioration occurs.
  • Infosys announced the signing of a Memorandum of Understanding with Aramco, to work on advancing HR technologies. Through artificial intelligence technology, Infosys and Aramco hope to offer the latest insights to HR data and analytics, and scale the usage of automation tools

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 5582
  • Published Date: Jan 29, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing interest in energy efficient technology and demand for location-based ambient intelligence is fueled by increasing use of AML are the major factors driving the growth of the location-based ambient intelligence market.

The market size of location-based ambient intelligence is anticipated to attain a CAGR of 23% over the forecast period, i.e., 2024-2036.

The major players in the market are Huawei Technologies Co., Ltd., Cherry Labs, SAMSUNG, Honeywell International Inc., Vita Group Holdings Limited, Nuance Communications, Inc., Microsoft Corp, HTC Corporation, Schneider Electric, and others.

The affective computing segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Location-based Ambient Intelligence Market Report Scope

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