Report Key Questions:
- What are the key figures, in terms of both usage and revenues, for mobile LBS in Europe, US and Japan?
- Is mobile LBS suited as a standalone service, or will it evolve as an enabler to enhance other services?
- What is SoLoMo (Social, Local, Mobile) and why is it a key concept?
- What are the business models for mobile LBS, and what are their trends?
- Is mobile LBS a market for start-ups, or is a playing field for the Internet juggernauts?
Mobile LBS in numbers
- Traditional mobile LBS users
- All mobile LBS users
- Mobile LBS revenues
The SoLoMo concept
- Business models
- Targeted advertising
-Direct paid revenues shifting to freemium
- Mobile LBS an enabler for various services
- Mobile LBS a tool for the Internet juggernauts
Market Forecasts 2010-2017
- United Kingdom
- Mobile LBS users
- Number of “traditional” mobile LBS users
- Number of all mobile LBS users
- Mobile LBS service revenues
- Mobile subscribers
- Number of mobile subscriptions
- Number of 3G subscriptions
- Mobile terminals
- Shipments of mobile phones
- Shipments of smartphones
- Mobile Internet users
1.1. Mobile LBS in figures
1.2. The SoLoMo concept
1.3. Business models
1.4. Mobile LBS: an enabler for the juggernauts
2. Market structure and key factors
2.1 Market overview
2.1.2. Market segmentation and trends
2.2. Key drivers / aspects
2.2.1. Key technologies
2.2.2. Augmented reality
2.2.3. Privacy issues
3. Market structure and player strategies
3.1. Industry structure
3.1.1. Value chain
3.1.2. Competition landscape and profiles
3.1.3. Business models
3.2. Strategic analysis
4. Markets and forecasts
4.1. Market development factors
4.1.1 Analysis of growth drivers and barriers
4.1.2 Forecast hypotheses
4.2 Market forecasts 2010-2017
4.2.1. Mobile LBS users
4.2.2. Mobile LBS revenues
5.1 Mobile advertising in detail
IDATE publishes a report presenting the evolution of Mobile LBS which has now expanded from traditional maps and navigation services to social networking in the form of check-ins. The report provides detailed information about: the market structure, data & forecasts 2010-2017, competition structure and market trends.
“Mobile LBS on its own has limited competitive advantages, and thus ultimately it is a tool for the juggernauts to further enhance their pre-existing services and business models. Mobile LBS technologies in itself are readily available in the form of APIs and SDKs, and have no differentiating value on their own. In order to make the mobile LBS attractive, various other elements need to be added", says Soichi NAKAJIMA, Senior Consultant at IDATE and project manager of this study.
"This means that the Internet giants, who already have far-reaching and well-established businesses, are in a strong position to acquire innovative LBS start-ups to further enhance their services. On the other hand, start-ups are finding it hard to make the break through with such giants already in place. Recent acquisitions of leading innovative LBS start-ups, such as Gowalla and WHERE by Facebook and eBay respectively, show the destiny of mobile LBS; mobile LBS is best utilised as an enabling technology, in the form of tools for the juggernauts to enhance their services.”
Mobile LBS users of today have a wider definition
Today, the term ‘mobile LBS' can include different services depending on different people. Traditionally, LBS tended to refer to mapping and navigational services, very similar in form to the kind of services provided to drivers in their cars, through personal navigation devices (PNDs) or in-car navigation systems. More recently, however, especially with the rise of smartphones and associated application usage, mobile LBS can cover a much wider range of services, and can be more subtle too. Social networking applications offering check-in options, and services which allow users to search for information in their proximity (such as Yellow Pages, TripAdvisor…), all use geolocation services through the mobile phone and can be hence considered as mobile LBS.
Depending on the definition of mobile LBS used, the number of users will differ. Even when taking the narrower definition of traditional mobile LBS (mapping and navigation), IDATE expects the number of users to grow, primarily driven by the overall growth of mobile Internet usage, in turn driven by increased users of smartphones. Taking the EU5 as an example, traditional mobile LBS users are forecast to stand at 114 million in 2017, up from an expected 79 million in 2012. However, if one takes the wider definition of mobile LBS, for the same EU5, the number of users is forecast to be 178 million. The same pattern also applies for the USA and Japan, also covered in the database.
Mobile LBS revenues will be boosted by advertising, in the long term
In very much the same way as mobile LBS users as described above, the revenue source also differs depending on the traditional form and the newer form. Traditionally, the main (or indeed only) source of mobile LBS revenue came from direct user payment for navigation services. Whilst this model still exists, however, more services now use advertising, and it is this advertising model which is expected to drive revenue growth in the future. In particular, mobile advertising on social networks, very small today, is expected to become a force to be reckoned with in the years ahead.
In terms of figures, for the EU5, USA and Japan, IDATE forecasts for 2017 that revenues from mobile LBS will stand at 964 million EUR, 2.4 billion EUR, and 1.9 billion EUR respectively. Since the USA is the most advanced in the advertising market, it will have the largest ratio of advertising within this revenue, whilst Japan has a strong paid-revenue model and thus will have the largest ration for direct-paid revenue. The EU5 has the largest CAGR, at 54.5% from 2012 to 2017, largely due to the fact that the market as of today is yet to develop compared to that of the USA or Japan.