Global Market for Location Based Services to Reach US$21.14 billion by 2015, According to New Report by Global Industry Analysts

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GIA announces the release of a comprehensive global report on location based services (LBS) market. The global market for LBS is projected to reach US$21.14 billion in annual revenue by 2015, registering 1.24 billion subscribers. The market in the short to medium term period will be driven by factors such as development of GPS, proliferation of GPS-enabled touch-screen phones, growing popularity of mobile commerce, and increasing usage of Location based Social Network Services, Location Based Shopping Applications, Location Enabled Search, and Location Based Mobile Advertising. Additionally, increasing demand for personal navigation and location based services that provide users with POI information augurs well for the future of this market.

Location Based Services (LBS): A Global Strategic Business Report

Technological advancements have added numerous functional dimensions to the mobile phone, leading to the broad acceptance of mobile data services on par with the hitherto voice only service. With most mobile service providers looking beyond the initial subscriber value, the focus is on new emerging technologies that can help in delivering high-value, differentiated communication services beyond the traditional voice. Against this backdrop, Location Based Services (LBS) as a highly personalized mobile data/information service ranks as a powerful and lucrative service differentiation tool in the marketplace. Location information about mobile devices on a network can be transformed into a strategic asset for mobile carriers, given the fact that such location information can be utilized to provide tailored value-added information services that enhance the user experience and simultaneously result in incremental profitability for the service provider.

Surging levels of mobile data service subscribers, emergence of GPS-enabled mobile devices, rollout of 3G and 3.5G mobile broadband networks, emergence of Web 2.0 and Mobile 2.0, introduction of new mobile platforms (Google’s Android and Apple’s iPhone) have all helped drive growth in the global location based services market. With growing number of people using mobile Internet, the question of “location” will assume profound importance. Given the criticality of location identification to ensure smooth trading transaction, development of cutting edge location-aware applications flaunt the potential to change the future of m-Commerce and in the process business prospects for LB-services. Similarly, for advertisers/marketers/ entrepreneurs location-enriched data promises to emerge into a powerful resource tool for value addition. Location based advertising for instance, enables behavioral targeting leading to unrivalled levels of ad customization that heightens the relevancy of the same to the customer and also the chances of effecting a sale transaction.

LBS mostly use Global Positioning System (GPS) technology to track the current location of the subscriber. As availability of GPS technology for public applications increases, commercial feasibility of LBS is also expected to witness a parallel rise. Additionally, with falling prices of GPS chipsets and hardware, penetration of GPS technology in cellular phones has paved the way for a whole new world of location based services. Technology has shrunk GPS modules in terms of both size and price, making them available to general consumers in the form of GPS enabled handhelds, notebooks, personal navigation devices (PNDs) and phones, thus heightening the business case for consumer-centric location-based services (LBS).

As stated by the new market research report on LBS, North America is the largest regional market registering service revenues of US$695.75 million. Europe is projected to display the fastest CAGR of more than 100% over the analysis period. Technology affinity of developed countries and greater diffusion of service innovation in these countries explain the dominance of North America in the world LBS market. Rising consumerism has heightened the need for tracking and monitoring services in these markets, while a large mobile phone user base, and proliferation of enabling technologies like location enabled Wi-Fi, GPS and terrestrial network expansions provide a fertile environment for easy proliferation of these services. Asia-Pacific rakes in a 30.8% share in the total number of subscribers estimated in the year 2009. Rising levels of urbanization ranks as a prime driver for LBS penetration in developing markets such as Asia-Pacific, since higher population densities result in lowering the cost of the service, thus accelerating its adoption.

Players in the market include Orange UK, Sprint Nextel, T-Mobile Deutschland GmbH, Vodafone Group Plc, AT&T Inc., Verizon Communications Inc., NTT DoCoMo Inc., Garmin International Inc., TeleCommunication Systems Inc., Ituran Location and Control Ltd., TeleNav Inc., TomTom International BV and Trueposition Inc, among others.

The report titled “Location Based Services (LBS): A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues and technology overview. The report also enumerates recent product/service launches and strategic corporate initiatives in addition to providing profiles of key market participants. The report provides market estimates and projections for location-based services in terms of annual revenue and by number of subscribers in thousands for geographic regions, such as, North America, Japan, Europe, and Asia Pacific.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Location_based_Services_LBS_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press(at)StrategyR(dot)com
Web Site http://www.StrategyR.com/

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