Location-based services
What are location-based services?

Location-based services (LBS) use real-time location data to provide context-aware insights, automation, and experiences within physical environments. By transforming the network into a source of location intelligence, organizations can gain visibility into people, assets, and spaces to improve navigation, optimize operations, enhance safety, and make smarter business decisions. Rather than treating location as a standalone application, modern location-based services establish it as a foundational data layer that enables connected systems, devices, and applications to deliver more personalized, efficient, and intelligent experiences across workplaces, healthcare facilities, retail stores, campuses, and other large environments.

Time to read: 6 minutes 53 seconds | Updated: August 5, 2026

Table of Contents

    Key takeaways for Location-based services

    • Location-based services (LBS/RTLS) use geographic context to power wayfinding, asset tracking, targeted engagement, and smart spaces. They also improve safety, incident response, and operational efficiency through geofencing, alerts, analytics, and space-utilization insights. 
    • Wi-Fi provides the core infrastructure for indoor location services, using access points and network data to locate people, assets, and devices. This enables wayfinding, asset tracking, occupancy analytics, safety notifications, and smart-space automation without requiring a separate overlay network. 
    • Wi-Fi is central to location services, using access points and ranging techniques such as RSSI and 802.11mc to determine device location. Because it builds on existing infrastructure, Wi-Fi reduces cost and complexity while supporting scalable indoor location awareness. 

    Location-based services explained

    Location-based services describe the delivery of applications that are location-aware. Several wireless technologies can be used including: 

    • Wi‑Fi ranging techniques that are based on 802.11mc (fine time measurement) or Received Signal Strength Indicator (RSSI) method.
    • Ultra-wideband (UWB) which operates at very high frequencies and requires an expensive overlay network to deliver centimeter-level accuracy. 
    • Bluetooth battery-operated beacons that can work with Wi‑Fi APs.
    • Virtual Bluetooth LE replaces physical beacons with software, lowering costs and simplifying indoor location deployments.

    What are the use cases for location-based services?

    Digital modernization is accelerating, driving the creation and expansion of location-aware services like turn-by-turn wayfinding, high-value asset tracking, retail customer engagement, business analytics, and smart office initiatives. Yet organizations are unable to deploy indoor location as widely as they would like or to provide seamless user experiences across indoor and outdoor environments due to the complexity, cost, and level of effort existing solutions require.

    What is the market opportunity for location-based services?

    Gartner projects the indoor location services market to reach $55 billion revenue by 2030, up from $1.9 billion in 2021 (Gartner, Emerging Technologies: Revenue opportunity projection for indoor location services). Much of this growth is driven by the increase in trackable IoT devices. Indoor location services have already been widely adopted for healthcare, retail, hospitality, logistics, industrial, and manufacturing application.

    How does indoor location differ from outdoor location?

    Outdoor location is able to use GPS measurements because they have clear line of sight. Indoor location cannot rely on GPS. For example, when you use Google Maps on your mobile phone outdoors, it can calculate your location to an accuracy of several meters. However, when you use Google or Apple Maps indoors, the error of measurement is much larger.

    For the past 20 years, the industry has been looking at new methods to provide accurate indoor measurements. Wi‑Fi location-based measurements can use fine time measurement (FTM) techniques based on the 802.11mc standard (also known as Wi‑Fi CERTIFIED Location) to calculate the round-trip time. The APs must know their precise location so that they can act as reference points for client devices.

    What is the role of APs in Wi‑Fi location-based services?

    APs act as the reference point from which client device measurements are based. Traditionally, IT would manually map APs and position them on hand-drawn, site-specific maps. This introduced error, especially because maps were not updated when APs were moved. The measurements were also typically locked in x-y coordinates that could not be used by standard mapping applications such as Google or Apple Maps. Because of the manual effort required, research shows that only 25% of APs are currently mapped. 

    HPE uses a patented virtual BLE antenna array in access points to create directional beacon signals. Devices send signal data to the cloud, where AI-driven probability modeling (not triangulation) delivers highly accurate real-time location estimates. 

    How do APs overcome the challenge of weak GPS signals indoors?

    A mobile GPS receiver like the one you have in your phone will fail indoors. These receivers have been optimized to work well within the limitations of a very dynamic mobile device that must deliver a position quickly and support navigation. The GPS system in APs can be optimized specifically for a stationary indoor use case, where we have time and stability to integrate measurements over long periods of time and to combine measurements taken at different times of day when satellites may be in more favorable positions. Because the APs are deployed together and share their location information, those that have a better view of the sky are able to provide very high-quality assistance to improve the sensitivity of those that are more challenged. Because we have precise knowledge of relative positions from FTM, we are able to combine measurements from different APs and resolve those into individual locations.

    Why do Wi‑Fi 6E and in the future Wi‑Fi 7 require accurate location?

    Low Power Indoor (LPI) devices are already approved for use in the 6 GHz band for Wi‑Fi 6E and in the future Wi‑Fi 7 but for higher frequencies, regulators require that incumbent users of the spectrum are protected. Automate Frequency Coordination services, such as Federated Wireless's, rely on location determination to protect incumbents and unlock the additional 1200 MHz of spectrum in countries that follow the US FCC model (500 MHz in many European countries). This additional capacity in the 6 GHz band delivers greater speed, supports higher densities, and unlocks new use cases such as high-definition video and virtual reality.

    What 802.11mc?

    802.11mc is an IEEE definition for Wi‑Fi which includes a ranging technology known as FTM. Unlike previous ranging technologies that were based on signal strength (RSSI), FTM uses round trip time to deliver higher levels of accuracy. Signal strength provides ~10-meter accuracy compared to 1–2-meter accuracy for FTM, dependent on the accuracy of the AP reference point placement. The Wi‑Fi Alliance has created a vendor certification known as Wi‑Fi CERTIFIED Location® for solutions that demonstrate 802.11mc functionality. HPE Aruba Networking is the only enterprise AP vendor to achieve Wi‑Fi Location certification.

    What is 802.11az?

    802.11az is an IEEE amendment, also known as the next generation positioning standard. Recently finalized, it enables absolution and relative positioning of client devices using FTM at the same high-level of accuracy as ultra-wide band (UWB) techniques of less than 1 meter without the extensive overlay deployment.

    What is Open Locate?

    Open Locate is an industry-wide initiative to standardize how APs share their reference locations with the ecosystem, over-the-air and via cloud-based APIs. This enables mobile devices to locate themselves and to support location and analytics applications such as workplace utilization, space analytics, geofencing, and wayfinding services. Devices that lack support for FTM can also participate; they can calculate ranges using the nearest AP using signal strength ranging via Wi‑Fi or Bluetooth radios that are built into the APs. HPE Aruba Networking is working in conjunction with IEEE and the Wi-Fi Alliance and ecosystem vendors such as Google, Samsung, Zebra, and Tile to formalize Open Locate.

    Benefits of Wi‑Fi location-based services

    Indoor Location Services transform the existing network into a real-time source of operational and business intelligence. Beyond simply locating people or assets, they enable:

    • Turn-by-turn wayfinding, personalized employee and visitor experiences, location-aware security, and streamlined Wi-Fi onboarding. 
    • Organizations gain visibility into space utilization, occupancy patterns, traffic flow, and asset locations, helping optimize workplace design, resource allocation, and operational efficiency. 
    • Location data also supports smart building initiatives, sustainability programs, IoT integration, and workflow automation.

    Most importantly, location creates a foundational data layer that provides the contextual intelligence needed for AI-driven decision-making, predictive analytics, and future autonomous operations. By leveraging existing network infrastructure, organizations can improve employee experiences, reduce costs, increase productivity, and make more informed business decisions without deploying separate location systems.

    What are the different types of location-based services?

    Comparison of Wi‑Fi location-based services techniques

    Relative Signal Strength Indicator (RSSI)
    Angle of Arrival (AoA)
    Ultra-wide Band (UWB)
    FTM(802.11mc/802.11az)

    Description: The oldest and least accurate method to estimate distance

    Description: BLE combined with signal strength method to improve poor accuracy

    Description: Location is determined based on high-frequency, close range measurements

    Description: Location is determined based on highly granular, round-trip measurement times

    Limitations: Signal is impacted by building and environmental materials, thereby reducing accuracy

    Limitations: Requires custom RF hardware

    Limitations: Overlay deployment with high effort, high cost

    Limitations: Wi‑Fi APs must support FTM

    Level of accuracy: 10 meters

    Level of accuracy: Unknown

    Level of accuracy: Several centimeters

    Level of accuracy: 1-2 meters to several centimeters

    Location-based services FAQs

    What is indoor location technology and RTLS?

    Indoor location technology helps determine the position of people, devices, and assets inside buildings where GPS is unreliable. Combined with Real-Time Location Services (RTLS), it provides continuous location visibility for navigation, asset tracking, workplace analytics, automation, safety monitoring, and operational insights.

    How does indoor location work, and why doesn't GPS work indoors?

    Indoor location uses technologies such as Wi‑Fi, Bluetooth®, Ultra-Wideband (UWB), sensors, and IoT devices to estimate location. GPS signals weaken when passing through walls and building materials, making dedicated indoor location technologies necessary for accurate positioning indoors.

    What are the benefits and ROI of indoor location?

    Indoor location improves operational efficiency, employee and visitor experiences, asset visibility, workplace utilization, safety, and decision-making. Organizations often realize ROI through reduced search times, improved productivity, optimized space usage, lower infrastructure costs when integrated with Wi-Fi, and operational efficiencies.

    Can indoor location use existing Wi‑Fi infrastructure, and how accurate is it? 

    Many indoor location solutions leverage existing Wi‑Fi infrastructure, reducing deployment costs and complexity. Accuracy varies by technology and environment, ranging from room-level visibility to highly precise sub-meter accuracy using technologies such as Ultra-Wideband (UWB).

    What are the most common indoor location use cases?

    Common use cases include indoor wayfinding, real-time asset tracking, employee and visitor navigation, occupancy analytics, space utilization monitoring, workplace planning, operational visibility, and data-driven decision-making across facilities.

    How does indoor location support smart buildings, safety, and security?

    Indoor location provides real-time awareness of occupancy, movement, and asset activity. This enables smart-building automation, environmental optimization, geofencing, emergency response, worker safety initiatives, restricted-area monitoring, and enhanced situational awareness.

    What industries use indoor location technology, and what should organizations consider before deployment?

    Indoor location is used across healthcare, workplaces, retail, education, manufacturing, warehousing, hospitality, transportation, government, and large venues. Key deployment considerations include business goals, accuracy requirements, infrastructure, integrations, privacy policies, user adoption, and expected ROI.