How Much Does It Cost to Develop a Location-Based App?

Updated 02 Jun 2023
Published 01 Apr 2022
Satyam Chaturvedi 2840 Views
Geolocation App Development

More than 270 million people in the United States carry devices that are geolocation-enabled. Approximately 67% of them use maps and other location-based applications on a monthly basis. Most of them don’t turn off geolocation since it’s useful to constantly be able to access location information or nearby points of interest.

As per Allied Market Research, the global market for location-based services is predicted to reach $318 billion in 2030, growing at a 24.3% compound annual growth rate between 2020 and 2030.

Incredibly impressive statistics, aren’t they? It’s a mistake for modern firms to ignore them. Applications that use location data are gold mines.

They have the potential to become useful tools for better meeting the demands of customers, providing more valuable services, and developing more accurate buyer personas. When taken as a whole, these elements may serve as a solid foundation for your company and help it grow faster.

Why use a Geolocation Application?

To get the most out of their essential activities, businesses must create apps that rely on geolocation. Using it as a marketing tool, companies can reach their intended consumers and find new ways to engage with them.

Location Based Application Development
Image Credit: Statista

A geolocation app can deliver real-time information about nearby items and locations to the user. Companies may gather client input on how they might improve by placing markers on a map.

What does a geolocation app provide for businesses?

According to Statista, Smartphone users will rise from 6.259 billion in 2021 to 7.690 billion in 2027. It signifies that there are many potential clients for firms to serve.

According to the Location Based Marketing Association (LBMA), 95% of worldwide companies utilize geolocator  Furthermore, it has applications to reach new consumers. Let’s take a look at how companies might profit from geolocation apps:

Geolocation App Development
Image Credit: Statista

Advertising on the go

GPS is used in a mobile location app to detect the user’s current position. Geolocation application push notifications tell the user about nearby deals and discounts as well as other services that are accessible.

Purchase Suggestions

Using a map location app can help local companies make more money. Businesses may utilize apps like Google Maps to learn about their customers’ shopping habits and provide them with customized recommendations. Companies can also advertise their local suggestions by deploying a location-based app on mobile devices.

Quick and Accurate Services

Businesses may provide service to their consumers more efficiently by utilizing geolocation apps. The use of a mobile app for location-based services aids companies in building client loyalty. GPS may be used to pinpoint a user’s location in a location app. This enables them to provide their product or service to that particular spot.

How does a Location-Based Application work?

Geolocation is used by mobile location apps. In order to detect the user’s location, it offers information about the device’s location. An Android, iOS, activity tracker, or GPS chip plus a Wi-Fi connection are all that is needed to pinpoint where a user is at any given moment.

Geolocation Mobile App Development

Even without a GPS, a geolocation app can locate a user. It may detect a user’s position by looking at nearby cell towers or Wi-Fi connection points.

What technologies are employed in the development of location-based applications?

Do you want to learn more about developing a location-based mobile application? There are two primary components you’ll require. The first is maps; the second is outdoor and interior detection services. Let’s compare and contrast the two:

Technologies for Outdoor Geolocator App

Maps and other outdoor navigation equipment assist people to travel to their destinations without difficulty. It also aids in locating the user and displaying the path they should take. Using GPS and satellite imaging, a location app can determine a specific area. Here are the specifics for each of them.

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GPS

What is GPS and how does one create a GPS application? To begin, each geolocator application makes use of the Global Positioning System (GPS) built into every smartphone. It’s the most common way to find a lost iPhone.

An accurate position may be determined using GPS, which gets signals from satellites and doesn’t need the internet to function.

A-GPS

Assisted GPS (A-GPS) combines the Cell ID with GPS in order to provide a greater level of precision. The advantages of this technology are reduced power use, improved responsiveness, and good speed.

Cell ID

Using cellular towers nearby, the location of the device may be detected when GPS signals are unavailable. Although Cell ID is not as precise as GPS, it is still a useful tool for locating cell towers.

Positioning through Wi-Fi

Wi-Fi positioning, which gets data from the internet and delivers improved accuracy, is used in Android map applications. It has a minimal battery drain and may be used in densely populated locations. You’ll need a Wi-Fi hotspot to utilize Wifi-Positioning.

location-based app DevelopmentIndoor Technologies

A person’s whereabouts may be tracked inside a building using indoor geolocation technology. It’s easier to find your way around a building with these devices. The following are some of the most common indoor location monitoring systems.

Geofencing

Combining Wi-Fi, cellular networks, and GPS, it’s an effective location-based marketing strategy. While it does not provide a precise location, it does assist companies in attracting more customers from the outside.

Eddystone and iBeacon

Apple’s iBeacon and Google’s Eddystone are two different services. Bluetooth Low Energy (BLE) indoor location tracking is used by both of these devices. They transmit Identifiers, which activate actions in iBeacon or Eddystone-enabled apps.

Location-Based Apps: Different Types

For any service-based firm, geolocation is a must-have. They are not limited to cab services or finding the closest business. Location-based services cover anything from maps and directions to social networking with geotagged photos, route planning, and fitness applications that keep track of heart rate.

The following are some of the most common types of geolocation applications:

Geosocial Apps

The location of a restaurant, theatre, gym, or hotel is frequently tagged by users on social media. Rather than providing an address in response to the query, “Where are you?” one might just point to the spot.

Dating mobile applications also make use of location technology by assisting users in locating compatible individuals within a certain area.

The finest examples of this sort of location-based app include Facebook, Tinder, and WhatsApp. For example, in the first quarter of 2021, Facebook made $25.4 billion in revenue, with a total capital amount of $16.1 billion. Moreover, there are more than 2.80 billion active users globally on Facebook.

Navigation and Maps

Mapping and navigation mobile apps are the most popular method of developing geolocation apps. By tracking the user’s position and creating the best routes, these applications assist users to get around unfamiliar regions. Traffic congestion can also be displayed by various services.

geolocation app Development Solution

Examples of navigation applications include Google Map, Waze, and Glympse. As of 2021, Google Maps’ income reached $4.3 billion thanks to the service’s estimated one-billion active users.

Demand-Based Services

Various GPS-based mobile apps can benefit from location detection. People may order a cab, a meal, or even gasoline with only a few taps without having to wait in long lines or wait for the manager’s response.

An in-depth tutorial like this on building location-based apps would be useful to practically any small business owner who is looking to create customer loyalty.

Uber Eats and Zomato are a couple of the most prominent participants in this business. As per Uber Eats, the company has earned $4.8 billion in 2020. More than 66 million people have signed up for the service.

Fitness Apps

Globally, the fitness sector is seeing unprecedented growth as more individuals place a high value on their own health and fitness aspirations. Using geolocation applications, users may design jogging routes, track outdoor sports activities, plan workouts, and check daily progress.

As a bonus, users may post data about their accomplishments on Instagram or Facebook.

Entrepreneurs have been encouraged by Nike Running Club and MyFitnessPal to investigate ways to build GPS-based fitness mobile applications. More than $128 million is expected to be earned per year by MyFitnessPal, which received $18 million in total investment. More than 200 million people were using the platform at a time.

location-based applications Development

AR Games and Applications 

Pokemon Go, the popular mobile game, also makes use of GPS and Google maps. Pokemon may be found across the city thanks to location-based applications. Apart from that, the service has a strong social component and unifies its users into teams.

So, if you want to create fun games, consider geolocation app development to provide an exceptional consumer experience.

In 2020, Pokemon Go made $916 million, and it is predicted to reach $5 billion shortly. This app has more than 8 million US-based users.

Locating Services and Obtaining Recommendations

Using these applications, users may get personalized suggestions for cafés, restaurants, stores, hotels, and cultural enterprises to visit in the area depending on their tastes and interests. For example, if a user often visits Starbucks, the app will display them the nearby locations.

If you’re looking for the greatest examples of geolocation applications, Yelp and Foursquare are your best bets. Yelp made $232.1 million in the first quarter of 2021, with a total investment of $54 million. The site attracts 178 million unique users each month from a variety of platforms.

Travel Apps

Geolocation-based travel applications may be used in a variety of ways. It is possible for them to give guided tours to consumers throughout the world, or to be more particular and propose nearby hotels or flats.

When paired with augmented reality, they allow individuals to pick the areas they wish to visit, as well as place ideas and the most efficient ways to get there. Users’ smartphone receives all important information about nearby attractions and businesses.

You may get a sense of how a location-based app should work by looking at Airbnb, Expedia, and Booking. Airbnb and Expedia’s revenue is expected to reach $9 billion in 2022. 

E-commerce

Geolocation features are used by e-commerce platforms to give customers delivery information on their goods. Thus, location-based applications assist businesses in determining their customers’ whereabouts in order to provide the best available delivery options, resulting in increased customer retention.

A few of the most well-known e-commerce applications are Amazon, eBay, and AliExpress. It has been counted that Amazon made $108.5 billion in the first quarter of 2021 and $116 billion in the second quarter.

Furthermore, it is estimated that over 1.9 million people are using Amazon to sell their goods. There are now more than 100 million Prime subscribers.

Steps To Create A Location-Based App

Define Your Goals

No matter what kind of app you want to design, the process of creating a location-based mobile app is pretty much the same. Every project begins with a clear vision.

It doesn’t matter if you don’t know precisely what features you’ll require or how your future application will appear; you need to define a goal for your product.

Your app’s target market and audience should be considered, as well as the problem it will address. Moreover, you should do market and competition studies to determine what is already available on the market and the standards for developing location-based applications.

Hire a Team of Developers

You’ll need a professional development team if you want to see your project through to completion. There are three distinct methods for recruiting a team. Freelancers, outsourcing, or an in-house team of developers are all viable options.

Freelancer

It’s the least expensive option, but freelancers aren’t as knowledgeable as the other two. Keep in touch with freelancers to ensure the project is progressing as planned.

Hire Mobile App DeveloperOutsource

When designing a single app, outsourcing the development to a firm is a good option. An in-house team of programmers is necessary when you have a large number of application development projects on the go

In-house

The cost of hiring an in-house team might be high due to the necessity of hiring both programmers and designers. An in-house team has the advantage of being simple to work with and keeping a watchful eye on the project’s development.

Read Also: Mobile App Development Benefits for Popular Industries

Identify Key Features

Before the application can be developed, you need to figure out what features are essential and what you want to include in order for the app’s performance to be optimal. Minimum Viable Product (MVP) is your greatest bet when getting started.

It is a cost-effective way to verify the app’s functionality before committing to further development. A location-based app must have the following features.

Integration of maps

Map integration is essential for recommending specific sites, planning itineraries, marking places on the map, and obtaining information about locations. Remember to enable offline mode for the convenience of your customers.

GPS Tracking

Location monitoring is essential for everything from deliveries to logistics and online taxi services. Delivery orders may be tracked, which is helpful in travel apps.

GPS Tracking App DevelopmentThe Use of GPS in Health and Fitness Apps

For sports like cycling, swimming, and jogging, a GPS tracker is a need for keeping track of time, distance, and speed. Sensors are required to monitor the user’s pulse, blood pressure, and oxygen levels in health applications

Voice Guide

As drivers are unable to glance at their phones’ screens while driving, a voice guide is an absolute necessity when driving. It is imperative that they have a voice guide so that they may be alerted when there is an impending turn or a traffic delay.

Notifications

Personalized promotions, such as discounts for long-term clients, can be sent out via push notifications. Trying to reach every consumer with a discount offer is less effective than trying to reach every customer with an offer based on their prior purchase history.

geolocation application Development CompanySuggestions

Suggestions might assist you in sending consumers customized information. They’re ideal for recommending things that are comparable to what the user is doing right now or that are geographically relevant to where the user is right now.

Design Attractive UI/UX

If you want people to utilize your app, you need to make it aesthetically appealing. The navigation mechanism in a location-based app must be easy to use and functional.

Come up with creative concepts and design features like buttons and tabs that stand out in order to capture the attention of the user. Keep your design as minimal as possible to ensure that it is simply comprehensible.

Development Phase

Assuming you’ve completed the previous steps, you’re ready to begin developing your mobile app. The project should be broken down into smaller sprints and each sprint should have a defined deadline.

As a result, it will be simple to determine whether or not the project is moving forward as per the scheduled date.

Implementation and Maintenance

It’s imperative that you properly mobile application testing once it’s through development to make sure there aren’t any bugs or problems remaining in there.

Once these issues have been resolved, you may begin submitting your application to the various app stores.

Before releasing your app, check to see if it complies with the App Store and Google Play Store criteria. Once the app has been deployed, all that’s left is to keep it updated. Add new features to the app frequently by releasing fresh builds and upgrades.

The Challenges in Creating Location-Based Applications

Security

Due to privacy concerns, many smartphone users refuse to activate geolocation or provide permissions for applications to follow their movements.

Hire privacy and data protection specialists and make sure your IT firm understands the issue.  Make your GPS app safe by following these steps:

Location Based Application Development

  • Make it more difficult for hackers to hijack personal accounts by implementing multi-factor authentication.
  • Encryption techniques such as AES-256 or RSA should be used to store sensitive data on consumer devices.
  • If the business fails to adhere to GDPR’s stringent security rules, it may face a fine of up to €20 million or possibly be barred from selling its products in Apple and Google stores.
Read More: A Complete Guide for Mobile App Development Standards

Ethical Issues

New marketing methods are centered on obtaining personal information. For the most part, people are willing to give up personal information in exchange for better deals. It is important, however, for firms to exercise caution while collecting and using this data.

In this way, buyers and suppliers may both benefit from the information given. However, when clients are unaware that they are being followed and only one party benefits from the information gathered, the white line of ethics becomes hazy.

For example, the Girls Around Me app allowed male users to track the whereabouts of women nearby, which often led to severe consequences for the males using the service. As a consequence, in 2017, Apple decided to remove this app from the App Store.

Positioning Accuracy

According to logistics data, about 41% of drivers in the United States waste 15 minutes owing to inaccuracies in their location. This might result in annual losses for logistics firms of up to $2.5 billion. Make your positioning as precise as possible in order to attract the attention of large corporations.

Cost of Developing A Location-Based App In 2022

Based on the scope of your project, developers’ weekly rates, functionality complexity, and other considerations, the app development cost can range from $15,000 to $100,000 and beyond.

Geo-Location Based App Development Company

Without proper planning, there is no way to correctly estimate a project; thus, it is necessary to define your needs and the business objectives you wish to accomplish before requesting quotes from organizations with sufficient experience.

Conclusion

A location-based application requires well-defined objectives, a well-thought-out plan of action, and a solid strategy. Make sure you follow all of the processes outlined above and gather data in an ethical manner. Lastly, don’t clutter your app with adverts and notifications; instead, use them wisely and only when essential.

Satyam Chaturvedi

Satyam Chaturvedi is a Digital Marketing Manager at Arka Softwares, a leading app development company dealing in modern and futuristic solutions. He loves to spend his time studying the latest market insights.

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