News Item

Location-based services mushroom

Revenue from location-based services (LBS) in Europe is expanding at 20% per year.

Mobile LBS revenue in Europe is forecast to grow from €325 (~£281, $437) million in 2012 at a compound annual growth rate (CAGR) of 20.5% - to reach €825 (~£714, $1,110) million in 2017.

The larger current North American LBS market is forecast to grow at a lower CAGR of 9.2% - from $835 million in 2012 to $1,295 million in 2017.

Business intelligence company Berg Insight estimates that 40% of all mobile subscribers in Europe use some form of location-enhanced application on a regular basis. In North America, the larger installed base of GPS-enabled handsets and smartphones has led to a higher uptake of LBS.

Berg Insight estimates that about 50% of all mobile subscribers in the US now access LBS at least monthly. Local search, social networking and navigation services are the top application categories in terms of active users.

The company's Senior Analyst explains that smartphones are the most important enabler for LBS adoption in general. Smartphones in Europe now represent 45% of total handsets - and they have already surpassed 55% in North America.

Details from Berg Insight below . .

  • 13 February 2013
  • LNLG

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