The global hyperlocal services market size was valued at USD 3,379.30 billion in 2023 and is expected to be worth USD 3,668.81 billion in 2024. The market is projected to reach USD 9,974.09 billion by 2032, recording a CAGR of 13.32% during the forecast period.
Hyperlocal services involve delivering goods or services to a specific location, typically within a few kilometers. Their main goal is to ensure quick and efficient delivery to customers in a defined area. The increase in smartphone usage has enhanced consumer engagement with local businesses, making it easier to access online services, such as food delivery, grocery shopping, and home utilities. This convenience caters to the on-demand lifestyle of today’s consumers, driving the growth of hyperlocal services.
The COVID-19 pandemic had a positive impact on the global market. The pandemic led to increased safety and hygiene concerns among consumers. As a result, hyperlocal service providers placed significant emphasis on contactless delivery, which in turn fueled the demand for these services.
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Segmentation:
Utility Services Segment to Dominate Global Market Due to Use of Digital Media Marketing to Attract Customers
Based on type, the market is classified into food ordering, grocery ordering, utility services, pet food and medicines, and others. The utility services segment is anticipated to dominate the global hyperlocal services market in the coming years. This growth can be attributed to the businesses in this sector making use of digital media marketing and innovations for service delivery in order to attract customers from residential and commercial.
Residential Segment to Hold Highest Share Due to Hyperlocal Services Providing Quick Access to Essential Services
Based on end-user, the market is categorized into residential and commercial. The residential segment is projected to hold the highest share of the market in the coming years. This growth can be attributed to hyperlocal services, which provide quick access to essential services such as home maintenance, cleaning, and repairs, allowing users to save time and effort and thus, fostering segment growth.
With respect to region, the market covers North America, Europe, Asia Pacific, South America, and the Middle East and Africa.
Report Coverage:
The report has conducted a detailed study of the market and highlighted several critical areas, such as leading applications, end-users, types, and key market players. It has also focused on the latest market trends and key industry developments. Apart from the aforementioned factors, the report has given information on many other factors that have helped the market grow.
Drivers and Restraints:
Adoption of Hyperlocal Services by E-commerce and Mobile Commerce Platforms to Fuel Market Expansion
Technological advancements, such as automation, data collection, augmented reality, visibility, and artificial intelligence (AI), have become highly essential and have been attributed to the shift in demands from both suppliers and customers. The advancements and innovations have allowed hyperlocal service providers to strengthen their product offerings and improve customer experiences through personalized recommendations and efficient delivery of services. E-commerce and mobile commerce platforms have adopted hyperlocal services with the aim of minimizing delivery costs and times. These digital platforms have enabled transactions between consumers and service providers, offering easy access to diverse offerings such as food delivery, grocery shopping, and home maintenance.
However, cyber attacks may restrict the operations of hyperlocal services, resulting in service downtime or delays in order delivery, which is expected to hinder hyperlocal services market growth.
Regional Insights:
North America Dominated Market Due to Wide Adoption of Smartphones Enabling Easier Hyperlocal Service Accessibility
North America held the largest part in the hyperlocal services market share in 2023. This dominance can be primarily attributed to the wide adoption of smartphones, which enables easier hyperlocal service accessibility. Thus, consumers can order food, groceries, and other services seamlessly through mobile applications.
The Asia Pacific region is witnessing growth due to significant investments in hyperlocal startups, mainly in nations such as India, South Korea, and China. This investment aids in the development of advanced platforms, thereby connecting local businesses with consumers and improving service offerings and market reach.
Competitive Landscape:
Companies to Focus on Product Development to Address Consumer Demands
E-commerce websites offer enterprises a large set of data specifically based on factors such as customer trends, behaviors, and purchasing patterns. This information is vital for the incorporation of various marketing strategies, product development, and overall business decisions. This, in turn, enables the leading players to tailor their service portfolios, thereby addressing consumer demands effectively.
Notable Industry Development:
August 2023: Cox Media Group, a media company in the U.S., introduced Neighborhood TV. This streaming service is specifically developed for hyperlocal markets in regions served by local television or radio stations. Each “zone” of the service includes a cluster of zip codes in a six—to eight-mile radius.
LIST OF KEY COMPANIES PROFILED IN THE REPORT
- Swiggy (India)
- Zomato (India)
- Delivery Hero SE (Germany)
- Grubhub Inc. (U.S.)
- Instacart (U.S.)
- Dunzo (India)
- Urban Company (India)
- Housekeep (U.K.)
- Big Basket (India)
- Uber Technologies, Inc. (U.S.)
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