Sweden: According to a new research report by Berg Insight, mobile location-based service (LBS) revenues in Europe are forecasted to grow from € 735 million in 2013 at a compound annual growth rate (CAGR) of 25.8 percent to reach € 2.3 billion in 2018. The North American LBS market is forecasted to grow at a CAGR of 16.1 percent from US$ 1.8 billion in 2013 to reach US$ 3.8 billion in 2018. The main growth will come from increasing ad revenues in the social networking and local search segments. Berg Insight estimates that about 50 percent of all mobile subscribers in Europe were frequent users of at least one location-based service at the end of 2013. In North America where adoption of GPS-enabled handsets is still somewhat higher, an estimated 60 percent of all handset users now access location-based services at least monthly.
The report broadly categories LBS into eight sub-service categories including mapping and navigation, local search and information, social networking and entertainment, recreation and fitness, family and people locator services, mobile resource management, mobile advertising, as well as other enterprise and business-to-business solutions.
The report notes that social networking and entertainment category has now become the largest LBS segment both in terms of number of active users and revenues. It comprises a broad set of services that can be segmented into general social networking, messaging apps, friendfinders and games. Mapping and navigation is the second largest segment in terms of revenues and the third largest in terms of number of active users. Local search is now the second largest LBS category in terms of active users and the third largest in terms of revenues.
Source: Berg Insight