Mobile Location-Based Services – 9th Edition

Mobile Location-Based Services – 9th Edition

Mobile Location-Based Services is the ninth consecutive report from Berg Insight analysing the latest developments on the LBS markets in all regions worldwide.

This report in the LBS Research Series from Berg Insight provides you with 190 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from the ninth edition of the report:

360-degree overview of the LBS ecosystem.
Insights from 30 executive interviews with market leading companies.
In-depth analysis of market trends and key developments.
Comprehensive overview of key market verticals.
Detailed profiles of key players in the LBS market worldwide.
Updated forecasts by region and market vertical lasting until 2020.

This report answers the following questions:

How can mobile operators use location data for mobile analytics services?
How is location data used in secure authentication and fraud management services?
How are free navigation services affect the market dynamics?
What are the mobile strategies of search engines and directory publishers?
How is location technology used by mobile social networks and communities?
How is GPS-technology altering the conditions for people locator services?
What are the drivers for adoption of mobile workforce management services?
How is location being used to add value in mobile advertising?

Executive summary

Berg Insight defines mobile location-based services (LBS) as applications and services that in some way utilise the geographic location of a handset. The increase in usage of LBS and the number of active users have also resulted in significant revenue growth, especially for leading players including Google, Facebook, Baidu, Tencent, Twitter and Yahoo! that together account for about 60 percent of global LBS revenues. Global LBS revenues are forecasted to grow from € 10.3 billion in 2014 at a compound annual growth rate (CAGR) of 22.5 percent to reach € 34.8 billion in 2020. The main growth will come from ad revenues in the social networking and local search segments. Many enterprise services such as mobile analytics, secure authentication and fraud management are also expected to grow substantially in the next few years.

There are a number of alternative ways to categorise LBS. In this report, LBS are divided into service categories based on primary function: mapping, navigation and transport; travel and tourism; 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 B2B services. The social networking and entertainment category is now the largest LBS segment in terms of the number of users and the second largest is terms of revenues. It comprises a broad set of services that can be segmented into general social networking, messaging apps, friendfinders and games. The mobile channel has become a priority for the leading social networks that see rapid growth in access from mobile devices. Revenue growth in the category comes from a larger active user base and the fact that more leading players have started to monetise their mobile services, primarily through ads and in-app purchase of content. The local search and information service category, which includes general search services, directories, local discovery, shopping and coupon services, is now the second largest LBS category in terms of unique users, and the largest in terms of revenues. Revenue growth is driven by the adoption of handsets with improved capabilities and changing user habits. Mapping, navigation and transportation is the third largest segment both in terms of revenues and in terms of number of active users.

Although the number of active users of mapping and navigation services is still growing, revenues are only increasing slowly as competition from free and low cost services has intensified. More navigation app developers are now focusing on freemium apps where the core navigation service is free and users have the option to purchase additional content and features. The service category also includes a number of apps that for instance enable users to find information about traffic and public transport, or facilitate car rental and ride sharing services. The travel and tourism category is one of the leading online e-commerce segments that is now experiencing fast uptake of mobile apps. Family locator services have been part of mobile operators’ LBS portfolios for many years in developed markets and are being launched by some operators in emerging markets. These services have been especially successful in the US. However, these operator-branded services are now facing competition from freemium people locator apps that experience rapid growth worldwide as smartphone penetration grows also among children. The recreation and fitness segment is also growing in terms of users and revenues along with current trends of increasing attention to personal wellness. Businesses in more and more industries and countries are deploying workforce management solutions for smartphones in order to improve their operational efficiency. Even large companies that have previously used customised solutions are now adopting more standardised workforce management apps, with the aim of reducing IT system costs.

A majority of mobile operators in developed countries now market some kind of LBS.

However, operators increasingly rely on third party services rather than their own branded solutions. Operators are instead looking for new opportunities to monetise location data though advertising and various forms of enterprise and B2B services. Network-based location data is valuable for developers and third parties that need to locate any device, not only GPSenabled smartphones. Mobile operators now provide location data for a wide range of services such as fraud management, secure authentication and analytics services. Some mobile operators have now started to use anonymous bulk location data to improve the performance of their networks and to support internal marketing campaigns. Some operators have also launched analytics services for external customers that use the insights for applications such as site selection and footfall monitoring in the retail industry, outdoor media planning for advertisers, as well as for smart cities applications including urban planning and traffic monitoring.

About the Author

André Malm is a Senior Analyst with a Master’s degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include location-based services, car telematics, handset technologies and M2M/IoT markets.

About Berg Insight Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Berg Insight also offers detailed market forecast databases and advisory services. Our vision is to be the most valuable source of intelligence for our customers.

Executive summary
1 Introduction to location-based services
1.1 Definition of mobile location-based services
1.2 Mobile communication services
1.2.1 Mobile voice and SMS
1.2.2 Mobile data and applications
1.2.3 A brief history of location platforms and services
1.3 Mobile LBS categories
1.3.1 Mapping, navigation and transportation
1.3.2 Local search and information
1.3.3 Travel and tourism
1.3.4 Social networking and entertainment
1.3.5 Recreation and fitness
1.3.6 Family and people locator services
1.3.7 Location-based advertising
1.3.8 Mobile resource management and other enterprise services
1.4 Mobile app monetisation strategies and business models
1.4.1 Free apps
1.4.2 Paid apps
1.4.3 Freemium apps and in-app payments
1.4.4 Ad-funding
1.4.5 New channel to market
1.4.6 Bundled products and services
1.4.7 Mobile app business model trends
1.5 Mobile location technologies and platforms
1.5.1 Mobile network-based location technologies
1.5.2 GNSS: GPS, GLONASS, Galileo and Compass/BeiDou 2
1.5.3 Wi-Fi positioning
1.5.4 Bluetooth Low Energy and iBeacons
1.5.5 Hybrid and mixed mode location technologies
1.5.6 Handset client-based and probe-based location platforms
1.6 Smartphone ecosystems
1.6.1 Smartphone platform market shares
1.6.2 Smartphone vendor market shares
1.6.3 App stores
1.6.4 Competition among handset vendors intensifies as market growth slows
1.6.5 Smartphone platforms are becoming new vertical silos
1.6.6 Towards complete LBS offerings
1.6.7 Handset vendors and operators start to back new smartphone platforms
1.6.8 The mobile web, HTML5 web apps and native apps
2 Operator LBS offerings and strategies
2.1 Europe
2.1.1 3 Group
2.1.2 Deutsche Telekom
2.1.3 Orange Group
2.1.4 SFR
2.1.5 Telefónica Group
2.1.6 Telenor Group
2.1.7 TeliaSonera Group
2.1.8 Vodafone Group
2.2 North America
2.2.1 AT&T Mobility
2.2.2 Bell Mobility
2.2.3 Rogers Wireless
2.2.4 Sprint
2.2.5 TELUS
2.2.6 US Cellular
2.2.7 Verizon Wireless
2.3 Rest of world
2.3.1 América Móvil
2.3.2 BSNL
2.3.3 NTT DoCoMo
2.3.4 Telkomsel
2.3.5 Telstra
2.4 Industry analysis
2.4.1 Organisational capabilities and goals limit operator’s ability to provide LBS
2.4.2 Smartphone platforms challenge operators’ role as distribution channel
2.4.3 Operators are no longer the central source of location data
2.4.4 Emerging opportunities for operators in LBA and analytics
3 Consumer LBS categories
3.1 Mapping, navigation and transport services
3.1.1 Passenger cars and dedicated navigation systems
3.1.2 Mapping and routing services
3.1.3 Turn-by-turn navigation services
3.1.4 Key mapping and navigation app developers
3.1.5 Car rental, car sharing and ride sharing services
3.1.6 Speed camera warning apps and services
3.1.7 Traffic information services
3.1.8 Public transport services
3.2 Travel and tourism
3.2.1 Travel planning services
3.2.2 Travel guides
3.3 Local search and information
3.3.1 Internet search engines
3.3.2 Directory services
3.3.3 Local discovery and review services
3.3.4 Shopping and coupon services
3.4 Social networking and entertainment
3.4.1 Social networking services
3.4.2 Check-in services
3.4.3 Friendfinder services
3.4.4 Chat, instant messaging and VoIP services
3.4.5 Location-based games
3.5 Recreation and fitness
3.5.1 Geocaching apps
3.5.2 Outdoor navigation
3.5.3 Sports tracking apps
3.6 Family and people locator services
3.6.1 Family locator services marketed by mobile operators
3.6.2 Family and people locator apps and services
4 Enterprise LBS categories
4.1 Mobile resource management
4.1.1 Fleet management services
4.1.2 Mobile workforce management services
4.1.3 Lone worker protection services
4.2 Mobile analytics
4.2.1 Mobile analytics platforms
4.2.2 Drivers and barriers
4.3 Other enterprise and B2B services
4.3.1 Location-enhanced call centre services
4.3.2 Fraud management
4.3.3 Secure authentication
5 Mobile advertising
5.1 Introduction
5.1.1 The advertising and marketing industry
5.1.2 Advertising on the mobile handset
5.1.3 Definitions and variants of location-based advertising (LBA)
5.1.4 LBA formats
5.2 LBA industry analysis
5.2.1 Mobile search providers
5.2.2 Mobile operators
5.2.3 Mobile coupons and deals providers
5.2.4 Traditional mobile advertising players
5.2.5 Major digital and telecom companies
5.2.6 LBA landscape trends
6 Market forecasts and trends
6.1 Summary of the LBS market
6.1.1 Location-based service revenues
6.1.2 Smartphone shipment and user forecast
6.2 Mobile advertising and LBA
6.2.1 Challenges and opportunities
6.2.2 Location can improve ROI for advertisers
6.2.3 LBA market value forecast
6.3 Vertical market trends
6.3.1 Navigation apps continue to transition from premium to freemium
6.3.2 Mobile now contributes half of total traffic for leading travel services
6.3.3 Mobile search and information service usage approach PC access levels
6.3.4 Social networking and entertainment increasingly monetise mobile apps
6.3.5 Smartphones are increasingly used as recreation and fitness devices
6.3.6 Family and people locator service adoption is driven by free apps
6.3.7 Focus on corporate efficiency drive WFM service adoption
6.3.8 Location data underpin a growing set of analytics and enterprise services
List of Figures
Figure 1.1: Mobile subscriptions by region (World 2014)
Figure 1.2: Wireless service revenues (World 2011–2014)
Figure 1.3: Mobile location-based service categories
Figure 1.4: LBS system overview
Figure 1.5: Smartphone shipments by vendor and OS (World 2014)
Figure 1.6: Smartphone adoption and market shares (EU28+2 2011–2014)
Figure 1.7: Smartphone adoption and market shares (North America 2011–2014)
Figure 1.8: Leading mobile app stores (June 2015)
Figure 2.1: Mobile operators by number of subscribers (EU27+2 Q4-2014)
Figure 2.2: Mobile operators by number of subscribers (North America Q4-2014)
Figure 2.3: Top global mobile network operators by subscriber base (Q4-2014)
Figure 3.1: Mapping apps and mobile websites
Figure 3.2: Android, BlackBerry, iPhone and Windows Phone navigation apps
Figure 3.3: Navigation app and service providers by active users (World Q4-2014)
Figure 3.4: Car sharing and mobility service companies (World Q4-2014)
Figure 3.5: Traffic information platform
Figure 3.6: Traffic information apps and services
Figure 3.7: Public transport information apps (June 2015)
Figure 3.8: Online travel companies
Figure 3.9: Travel guide publishers
Figure 3.10: Leading mobile Internet search engines
Figure 3.11: Leading directory service providers (2015)
Figure 3.12: Directory provider distribution channels and business models
Figure 3.13: Local discovery and review services (June 2015)
Figure 3.14: Shopping assistant and coupon services (June 2015)
Figure 3.15: Top ten social networks (World Q4-2014)
Figure 4.16: Examples of friendfinder services (2015)
Figure 4.17: Leading communication and instant messaging services (Q4-2014)
Figure 4.18: Examples of location-based game developers and games (2015)
Figure 3.19: Recreational GPS and wearable device sales (World 2012–2014)
Figure 3.20: Examples of outdoor navigation app developers (2015)
Figure 3.21: Examples of sports tracking app developers (June 2015)
Figure 4.22: People locator services marketed by mobile operators (2015)
Figure 3.23: Third party people locator services using Cell-ID (EU28+2)
Figure 3.24: People locator and location sharing apps (June 2015)
Figure 4.1: Examples of fleet management offerings by mobile operators
Figure 4.2: Workforce management services marketed by operators
Figure 4.3: Examples of mobile workforce management service providers
Figure 4.4: Mobile workforce management vendor segmentation
Figure 4.5: Lone worker protection service providers (2015)
Figure 4.6: Mobile marketing and analytics providers (2015)
Figure 5.1: Global advertising expenditure by media (World 2014)
Figure 6.1: Consumer and enterprise LBS revenue forecast (World 2013–2020)
Figure 6.2: Unique smartphone users by region (World 2013–2020)
Figure 6.3: LBA revenue forecast (World 2013–2020)
Figure 6.4: Mapping, navigation and transport service revenues (World 2014–2020)
Figure 6.5: Travel and tourism revenues (World 2014–2020)
Figure 6.6: Local search and directories revenues (World 2014–2020)
Figure 6.7: Shopping and coupon revenues (World 2014–2020)
Figure 6.8: Social networking and entertainment revenues (World 2014–2020)
Figure 6.9: Communication service revenues (World 2014–2020)
Figure 6.10: Recreation and fitness revenues (World 2014–2020)
Figure 6.11: Family and people locator services revenues (World 2014–2020)
Figure 6.12: Workforce management revenues (World 2014–2020)
Figure 6.13: Enterprise service revenues (World 2014–2020)
Figure 6.14: Analytics service revenues (World 2014–2020)

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