Location intelligence will become a "hot track" that the Asia-Pacific region will focus on in 2022

2021 is still a challenging year, but we have also learned to adapt to the new model brought about by the COVID-19 pandemic. In the Asia-Pacific region, many countries are trying to coexist with the COVID-19 pandemic and gradually reopening their borders. The inevitable changes brought about by the COVID-19 pandemic have also revealed the changing market needs. In an environment full of uncertainty, location data can predict demand, identify supply chain issues, and improve infrastructure planning. Data analysis, especially Location Intelligence, has become an important guiding tool for enterprises.

Asia has long been considered an important engine of world consumption growth, with an estimated $10 trillion in consumption growth opportunities in the next decade1. Technological development is also accelerating across China, which not only affects the way people live, work and play, but also has an impact on the role of location intelligence in the country. From the use of satellites to the application of sensors, robots and even drones, location intelligence has become a basic necessity in shaping the digital economy.

More and more Chinese companies are making headlines around the world. For example, SAIC Overseas Mobility Technology Co., Ltd. (SOIMT), China's largest overseas automaker, is powering the in-vehicle infotainment (IVI) systems of MG Motors in Thailand, Oceania and Europe. With HERE's location technology, drivers can get highly relevant and dynamic information about the route ahead, improving the connected driving experience.

As more Chinese auto companies look to overseas markets, location intelligence will play a bigger role in the future, especially with the support of some emerging trends next year and beyond:

Autonomous driving becomes mainstream

Self-driving cars, robots or drones may seem like something far in the future, but these driverless innovations are actually just around the corner. Major automakers are already developing self-driving cars and working towards commercialization.

SAIC, China’s largest automaker, and autonomous driving startup Momenta have begun offering public trial rides in autonomous robotaxis in Shanghai’s Jiading District to assess the feasibility of commercial applications3.

Automating driving data requires location intelligence, and as autonomous driving gains momentum in Asia, the need for geospatial technology and artificial intelligence will increase in the coming years.

Sustainable development becomes a hot topic

Sustainability remains a hot topic in the Asia-Pacific region, with China in particular setting a goal of “dual carbon”. As consumer preferences shift towards more sustainable options, this trend is likely to affect consumption patterns in the automotive industry, with the public favoring electric vehicles.

It is expected that by 2030, as much as 50% to 60% of sales in the Japanese auto market will come from battery-powered electric vehicles, fuel cell electric vehicles, hybrid electric vehicles, or plug-in hybrid electric vehicles. In India and Indonesia, the proportion is estimated to be between 30% and 50%. Countries such as Australia, Japan, Thailand, and India have also begun initial trials of electric trucks with swappable batteries at the initiative of their respective governments4.

This trend toward automation is not limited to four-wheeled vehicles. In fact, in some parts of Asia, two-wheeled vehicles are also embracing electrification at an accelerated pace. India, for example, is the world’s largest market for motorcycles, scooters, and mopeds—accounting for 80% of total sales 5.

The increase in EV adoption will cause global automakers to adjust their product portfolios to accommodate this growing demand, thereby reshaping the automotive industry’s value chain. As a result, the need for location intelligence will become more prevalent as automakers’ demand for supply chain efficiency, sustainability, and end-to-end visibility continues to increase.

The rapid development of digital twin technology

The ongoing COVID-19 pandemic has accelerated the “digital first” strategy of various industries. Therefore, as countries compete to develop advanced technologies to change the way people live, work and play in the smart cities of the future, test beds for new and smart technologies have also increased. One of the technologies used in these test sites is digital twins.

Digital twins are used to receive data from Internet of Things (IoT) sensors that collect information from real-world objects in real time and use the information in conjunction with historical data to predict reactions or impacts. This allows the replica to simulate the real-world object in real time and understand, reveal potential problems or manage high-risk scenarios.

In terms of smart city planning, digital twins simulate everything that happens in real-world smart cities. In Australia, New South Wales announced that it would invest A$40 million in spatial digital twins to enhance urban planning capabilities and promote urban development6. Singapore is also developing a digital twin grid to improve the resilience and reliability of the national grid and support the deployment of clean energy.

Without location technology, supported by sensors, image capture and processing, and data analytics, nothing about digital twins would be possible. In essence, location intelligence connects all elements of the digital twin and the smart city of the future.

The rise of super apps and the behavioral internet

The idea of ​​super apps first became a reality in China through WeChat, which has become ubiquitous in daily life, allowing people to communicate with each other, hail taxis, shop and make appointments for medical treatment. At the same time, WeChat has also inspired the rise of other popular super apps in the Asia-Pacific region, such as Grab, Paytm, Shopee, Gojek, etc.

Data is a fundamental component of super apps. As users spend more time in apps, more data is collected, allowing for better services to be provided to users. This has given rise to the Internet of Behavior (IoB), where data collected by IoT devices provides valuable information about user behavior, interests, and preferences.

This provides a huge opportunity for location intelligence, where companies can launch new products and services faster based on end-user behavior and preferences, truly benefiting users while respecting their privacy. IoB will soon become the new buzzword, no longer emphasizing "things" that are used to track human behavior, but more about human behavior itself.

It’s time to solve the “location” problem

From the above, it can be seen that location intelligence is gaining momentum in the Asia-Pacific region. More and more companies are beginning to realize the value of location data and analysis and the competitive advantages it brings to various industries. As the COVID-19 pandemic continues to put pressure on individuals, businesses and society, organizations that apply location technology capabilities will benefit and gain better insights in their strategic, tactical and operational analysis.

In the collective digital transformation journey of society, enterprises have overcome the questions of "Who is my audience?" and "What are user preferences?". On the road ahead, leaders need to start considering the "location factor" in analysis, that is, "Where will my users be?" and "Where are my users now?", in order to discover new consumer trends and needs and seize development opportunities in the more intense market competition.