Location-Based Services (LBS) Markets: Carrier Vs. Application Store

On-deck Subscriptions, Off-deck Downloads, and Advertising-based Revenue Models

Research Report

Pages
93
Deliverables
Released
4Q 2010
Product Code
RR-LBS-10
Price
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The arrival of off-deck application stores such as Android Market and the AppStore acted as a catalyst for significant growth in the location-based services (LBS) market in 2010. Much like Amazon’s impact on the publishing industry, the long tail of LBS revenue is now making its presence felt. The industry as a whole is now faced with a number of critical decisions that will define success over the next five years. This study clearly and concisely reveals each layer of the LBS market, enabling stakeholders to make informed decisions by comparing forecasts and analysis for each of the potential roadmaps available to them. For each major country/region and LBS segment, this report breaks down the market by on- vs. off-deck, paid vs. free, direct vs. advertising, and developer revenues vs. carrier/store revenues.

What Questions Does This Report Answer?

  • How big is the complete LBS market, including on-deck, off-deck, subscriptions, one-off fees and advertising?
  • How can carriers get back into the LBS game before it is too late?
  • What are potential future issues in off-deck LBS?
  • Where, when and how big will the location-based advertising market be?
  • Which market will offer the best advertising return?
  • Which location applications will be the most lucrative in the on- and off-deck markets?
  • Will all developers be forced to move to free/fremium model or is there still a market for paid LBS?
  • On which markets and business models should developers concentrate in order to achieve maximum long-term returns?

Who Needs This Report?

  • Cellular carriers
  • Handset vendors
  • Application store operators
  • Location-based application developers
  • Advertising platform developers
  • Advertising companies
  • GPS hardware manufacturers
  • Navigation manufacturers
  • Consulting firms
  • Content specialists
  • Financial institutions involved with mobile communications
  • Handset positioning technology vendors
  • LBS platform companies
  • System integrators
  • Trade associations
  • Venture capitalists and other investors

Table of Contents

  • Executive Brief

  • Executive Brief: Top-Line Forecast
  • Executive Brief: Top-Line Forecast
  • Executive Brief: Drivers
  • Executive Brief: Inhibitors
  • Executive Brief: Summary and Strategic Recommendations

Section 1.
Executive Summary

1.1. Market Dynamics
1.2. Barriers and Drivers
1.2.1. Generic Drivers
1.2.2. Location-Specific Drivers
1.2.3. Generic Barriers
1.2.4. Location-Specific Barriers
1.3. Forecasts
1.4. Conclusions

Section 2.
Recommendations

2.1. Recommendations for LBS Developers
2.2. Recommendations for Off-Deck LBS Platform Providers
2.3. Recommendations for On-Deck LBS Platform Providers

Section 3.
Definitions, Classifications, and Characteristics

3.1. Off-Deck versus On-Deck LBS Applications
3.1.1. On-Board versus Off-Board LBS
3.1.2. Smartphones versus Feature Phones
3.1.3. One-Off versus Recurring Fees
3.1.4. Paid-for versus Advertising-Based
3.1.5. Regional versus Global Reach
3.1.6. Network-Based versus Alternative Positioning Technologies
3.1.7. Consumer versus Enterprise
3.1.8. Bundled versus Free
3.1.9. LBS versus LES
3.1.10. Individual Applications versus Search Engines
3.1.11. Revenue Share Differences
3.2. Application Categories
3.2.1. Community
3.2.2. Enterprise
3.2.3. Search and Discovery
3.2.4. Personal Navigation
3.2.5. Gaming and Outdoor Pursuits
3.2.6. People Tracking

Section 4.
Location Technologies

4.1. GPS Chipsets and GPS Smartphones
4.2. A-GPS and SUPL
4.3. Alternative Positioning Technologies
4.3.1. Wi-Fi
4.3.2. Cell ID
4.3.3. MEMS (Micro-Electromechanical Systems) Location
4.3.4. Proximity Location
4.3.5. Others

Section 5.
LBS Players and Platforms

5.1. Mobile Application Market
5.2. On-Deck Platforms and Stores
5.3. Leading On-Deck LBS Applications Developers
5.3.1. GyPSii
5.3.2. Location Labs
5.3.3. TeleCommunications Systems (TCS)
5.3.4. Telmap
5.3.5. TeleNav
5.4. Off-Deck LBS Platforms and Stores
5.4.1. iPhone App Store
5.4.1.1. Platform Description
5.4.1.1.1. Mobile OS
5.4.1.1.2. Location Capabilities
5.4.1.1.3. Application Download Forecasts
5.4.1.1.4. Key Points
5.4.1.1.5. LBS Application Categories
5.4.2. BlackBerry App World
5.4.2.1. Platform Description
5.4.2.1.1. Mobile OS
5.4.2.1.2. Location Capabilities
5.4.2.1.3. Application Download Forecasts
5.4.2.1.4. Key Points
5.4.2.1.5. LBS Application Categories
5.4.3. Android Mobile OS
5.4.3.1. Platform Description
5.4.3.1.1. Mobile OS
5.4.3.1.2. Location Capabilities
5.4.3.1.3. Application Download Forecasts
5.4.3.1.4. Key Points
5.4.3.1.5. LBS Application Categories
5.4.4. Palm
5.4.4.1. Platform Description
5.4.4.1.1. Mobile OS
5.4.4.1.2. LBS Application Categories
5.4.5. Nokia (Ovi)
5.4.5.1. Platform Description
5.4.5.1.1. Mobile OS
5.4.5.1.2. Location Capabilities
5.4.5.1.3. Application Downloads
5.4.5.1.4. Key Points
5.4.5.1.5. LBS Application Categories
5.4.6. Samsung
5.4.6.1. Platform Description
5.4.6.1.1. Device OS
5.4.6.1.2. Location Capabilities
5.4.6.1.3. Application Downloads
5.4.6.1.4. Key Points
5.4.6.1.5. LBS Application Categories
5.4.7. Windows Mobile
5.4.7.1. Platform Description
5.4.7.1.1. Mobile OS
5.4.7.1.2. Location Capabilities
5.4.7.1.3. Application Downloads
5.4.7.1.4. Key Points
5.4.7.1.5. LBS Application Categories
5.4.8. Independent LBS Stores

Section 6.
Pricing, Discovery Techniques, and Marketing Applications

6.1. Pricing Strategies
6.1.1. Freemium Pricing Model
6.1.2. One-Off versus Recurring Fees
6.1.3. Location-Based Advertising Model
6.1.3.1. LBA Models
6.1.3.2. Response Methods
6.1.4. Free Subsidized Pricing
6.1.5. Analytics
6.2. Pre-Installed LBS Applications
6.2.1. Handset Model
6.2.2. Operator Model
6.3. Marketing Strategies
6.3.1. Direct Marketing
6.3.2. Viral Marketing
6.3.3. Storefront Recommendation Engines
6.3.4. Utilizing Carrier Advertising Advantage
6.3.5. Moving to Mobile Browser Applications
6.4. Advertising Revenue Forecasts
6.4.1. United States
6.4.2. Canada
6.4.3. Latin America
6.4.4. Western Europe
6.4.5. Eastern Europe
6.4.6. Asia-Pacific
6.4.7. Africa & Middle East

Section 7.
Drivers and Barriers

7.1. Drivers
7.1.1. The Rise of Smartphones
7.1.2. Ubiquitous and Diverse Positioning Technology
7.1.3. Free Mapping
7.1.4. The Increasing Presence of Facebook, Google, Microsoft, Yahoo!, Apple, Nokia, and RIM
7.1.5. Open Support of Location
7.1.6. Location-Based Advertising
7.1.7. 3G/4G Buildout
7.1.8. Free Applications
7.1.9. One-Off Fees and Freemium Models
7.1.10. Simplified LBS Development Environments
7.2. Barriers
7.2.1. GPS Signal Processing Latency
7.2.2. Indoor Environments and Urban Canyons
7.2.3. Network Diversity and Interoperability Issues
7.2.4. Data Roaming Charges
7.2.5. Restrictive Carrier Strategies
7.2.6. GPS Performance
7.2.7. Privacy
7.2.8. Portability
7.2.9. The Arrival of Local Search
7.2.10. Network Quality and Latency
7.2.11. Limited Access to Non-Smartphones
7.2.12. Off-Deck LBS Platform Limitations
7.2.13. Mobile and LBS Ecosystem Fragmentation
7.2.14. Uncertain Business Models

Section 8.
Market Forecasts

8.1. Definitions, Methodology, and Assumptions
8.1.1. Definitions
8.1.2. Step-by-Step Forecast Methodology
8.1.3. Assumptions
8.2. United States
8.2.1. On-Deck LBS
8.2.2. Off-Deck
8.3. Canada
8.3.1. On-Deck Market
8.3.2. Off-Deck Market
8.4. Latin America
8.4.1. On-Deck Market
8.4.2. Off-Deck Market
8.5. Western Europe
8.5.1. On-Deck Market
8.5.2. Off-Deck Market
8.6. Eastern Europe
8.6.1. On-Deck Market
8.6.2. Off-Deck Market
8.7. Asia-Pacific
8.7.1. On-Deck Market
8.7.2. Off-Deck Market
8.8. Middle East & Africa
8.8.1. On-Deck Market
8.8.2. Off-Deck Market

Section 9.
Company Directory


Section 10.
Acronyms

Scope of Study
Sources and Methodology
Notes




64 Tables

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68 Charts
  • On-Deck LBS Revenues World Market, Forecast: 2010 to 2016
  • Off-Deck LBS Revenues World Market, Forecast: 2010 to 2016
  • On-Deck LBS Revenues, Direct & Advertising World Market, Forecast: 2010 to 2016
  • Off-Deck LBS Revenues, Direct & Advertising World Market, Forecast: 2010 to 2016
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck Revenue, Direct & Advertising
  • Off-Deck Revenue, Direct & Advertising
  • Developer On-Deck Revenue, Direct & Advertising
  • Developer Off-Deck Revenue, Direct & Advertising
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck Free LBS Subscribers by Application
  • On-Deck Free LBA Revenue by Application
  • Off-Deck Free LBS Subscribers by Application
  • Off-Deck LBA Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
  • On-Deck LBS Subscribers by Application
  • On-Deck LBS Revenue by Application
  • Off-Deck LBS Subscribers by Application
  • Off-Deck LBS Revenue by Application
7 Figures
  • On-Deck LBS Model
  • Off-Deck LBS Model
  • Estimates of GPS-Enabled Handsets in the United States
  • Estimated Samsung 2011 Smartphone Product Split
  • Location-Based Advertising Platform Model
  • Handset Pre-Installation LBS Model
  • Operator Pre-Installation LBS Model