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

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

Research Report

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.

Table of Contents

  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 9. Company Directory
  • 10. Acronyms
  • Executive Brief: Top-Line Forecast
  • Executive Brief: Top-Line Forecast
  • Executive Brief: Drivers
  • Executive Brief: Inhibitors
  • Executive Brief: Summary and Strategic Recommendations

Tables

Log in to view the structure of the tables below.

  1. On-Deck LBS Subscribers by Application, World Market, Forecast: 2010 to 2016
  2. On-Deck LBS Revenue by Application, World Market, Forecast: 2010 to 2016
  3. Off-Deck LBS Subscribers by Application, World Market, Forecast: 2010 to 2016
  4. Off-Deck LBS Revenue by Application, World Market, Forecast: 2010 to 2016
  5. On-Deck Revenue, Direct & Advertising, World Market, Forecast: 2010 to 2016
  6. Off-Deck Revenue, Direct & Advertising, World Market, Forecast: 2010 to 2016
  7. Developer On-Deck Revenue, Direct & Advertising, World Market, Forecast: 2010 to 2016
  8. Developer Off-Deck Revenue, Direct & Advertising, World Market, Forecast: 2010 to 2016
  9. On-Deck Free LBS Subscribers by Application, United States, Forecast: 2010 to 2016
  10. On-Deck Free LBA Revenue by Application, Canada, Forecast: 2010 to 2016
  11. Off-Deck Free LBS Subscribers by Application, Canada, Forecast: 2010 to 2016
  12. Off-Deck LBA Revenue by Application, Canada, Forecast: 2010 to 2016
  13. On-Deck Free LBS Subscribers by Application, Western Europe, Forecast: 2010 to 2016
  14. On-Deck Free LBA Revenue by Application, Western Europe, Forecast: 2010 to 2016
  15. Off-Deck Free LBS Subscribers by Application, Western Europe, Forecast: 2010 to 2016
  16. Off-Deck LBA Revenue by Application, Western Europe, Forecast: 2010 to 2016
  17. On-Deck Free LBS Subscribers by Application, Eastern Europe, Forecast: 2010 to 2016
  18. On-Deck Free LBA Revenue by Application, Eastern Europe, Forecast: 2010 to 2016
  19. Off-Deck Free LBS Subscribers by Application, Eastern Europe, Forecast: 2010 to 2016
  20. On-Deck Free LBA Revenue by Application, United States, Forecast: 2010 to 2017
  21. Off-Deck LBA Revenue by Application, Eastern Europe, Forecast: 2010 to 2016
  22. On-Deck Free LBS Subscribers by Application, Asia-Pacific, Forecast: 2010 to 2016
  23. On-Deck Free LBA Revenue by Application, Asia-Pacific, Forecast: 2010 to 2016
  24. Off-Deck Free LBS Subscribers by Application, Asia-Pacific, Forecast: 2010 to 2016
  25. Off-Deck LBA Revenue by Application, Asia-Pacific, Forecast: 2010 to 2016
  26. On-Deck Free LBS Subscribers by Application, Middle East & Africa, Forecast: 2010 to 2016
  27. On-Deck Free LBA Revenue by Application, Middle East & Africa, Forecast: 2010 to 2016
  28. Off-Deck Free LBS Subscribers by Application, Middle East & Africa, Forecast: 2010 to 2016
  29. Off-Deck LBA Revenue by Application, Middle East & Africa, Forecast: 2010 to 2016
  30. Off-Deck Free LBS Subscribers by Application, United States, Forecast: 2010 to 2018
  31. Off-Deck LBA Revenue by Application, United States, Forecast: 2010 to 2019
  32. On-Deck Free LBS Subscribers by Application, Latin America, Forecast: 2010 to 2016
  33. On-Deck Free LBA Revenue by Application, Latin America, Forecast: 2010 to 2016
  34. Off-Deck Free LBS Subscribers by Application, Latin America, Forecast: 2010 to 2016
  35. Off-Deck LBA Revenue by Application, Latin America, Forecast: 2010 to 2016
  36. On-Deck Free LBS Subscribers by Application, Canada, Forecast: 2010 to 2016
  37. On-Deck LBS Subscribers by Application, United States, Forecast: 2010 to 2016
  38. On-Deck LBS Revenue by Application, Latin America, Forecast: 2010 to 2016
  39. Off-Deck LBS Subscribers by Application, Latin America, Forecast: 2010 to 2016
  40. Off-Deck LBS Revenue by Application, Latin America, Forecast: 2010 to 2016
  41. On-Deck LBS Subscribers by Application, Western Europe, Forecast: 2010 to 2016
  42. On-Deck LBS Revenue by Application, Western Europe, Forecast: 2010 to 2016
  43. Off-Deck LBS Subscribers by Application, Western Europe, Forecast: 2010 to 2016
  44. Off-Deck LBS Revenue by Application, Western Europe, Forecast: 2010 to 2019
  45. On-Deck LBS Subscribers by Application, Eastern Europe, Forecast: 2010 to 2016
  46. On-Deck LBS Revenue by Application, Eastern Europe, Forecast: 2010 to 2016
  47. Off-Deck LBS Subscribers by Application, Eastern Europe, Forecast: 2010 to 2016
  48. On-Deck LBS Revenue by Application, United States, Forecast: 2010 to 2017
  49. Off-Deck LBS Revenue by Application, Eastern Europe, Forecast: 2010 to 2019
  50. On-Deck LBS Subscribers by Application, Asia-Pacific, Forecast: 2010 to 2016
  51. On-Deck LBS Revenue by Application, Asia-Pacific, Forecast: 2010 to 2016
  52. Off-Deck LBS Subscribers by Application, Asia-Pacific, Forecast: 2010 to 2016
  53. Off-Deck LBS Revenue by Application, Asia-Pacific, Forecast: 2010 to 2016
  54. On-Deck LBS Subscribers by Application, Middle East & Africa, Forecast: 2010 to 2016
  55. On-Deck LBS Revenue by Application, Middle East & Africa, Forecast: 2010 to 2016
  56. Off-Deck LBS Subscribers by Application, Middle East & Africa, Forecast: 2010 to 2016
  57. Off-Deck LBS Revenue by Application, Middle East & Africa, Forecast: 2010 to 2016
  58. Off-Deck LBS Subscribers by Application, United States, Forecast: 2010 to 2018
  59. Off-Deck LBS Revenue by Application, United States, Forecast: 2010 to 2019
  60. On-Deck LBS Subscribers by Application, Canada, Forecast: 2010 to 2016
  61. On-Deck LBS Revenue by Application, Canada, Forecast: 2010 to 2016
  62. Off-Deck LBS Subscribers by Application, Canada, Forecast: 2010 to 2016
  63. Off-Deck LBS Revenue by Application, Canada, Forecast: 2010 to 2016
  64. On-Deck LBS Subscribers by Application, Latin America, Forecast: 2010 to 2016

Charts

  1. On-Deck LBS Revenues World Market, Forecast: 2010 to 2016
  2. Off-Deck LBS Revenues World Market, Forecast: 2010 to 2016
  3. On-Deck LBS Revenues, Direct & Advertising World Market, Forecast: 2010 to 2016
  4. Off-Deck LBS Revenues, Direct & Advertising World Market, Forecast: 2010 to 2016
  5. On-Deck LBS Subscribers by Application
  6. On-Deck LBS Revenue by Application
  7. Off-Deck LBS Subscribers by Application
  8. Off-Deck LBS Revenue by Application
  9. On-Deck Revenue, Direct & Advertising
  10. Off-Deck Revenue, Direct & Advertising
  11. Developer On-Deck Revenue, Direct & Advertising
  12. Developer Off-Deck Revenue, Direct & Advertising
  13. On-Deck Free LBS Subscribers by Application
  14. On-Deck Free LBA Revenue by Application
  15. Off-Deck Free LBS Subscribers by Application
  16. Off-Deck LBA Revenue by Application
  17. On-Deck Free LBS Subscribers by Application
  18. On-Deck Free LBA Revenue by Application
  19. Off-Deck Free LBS Subscribers by Application
  20. Off-Deck LBA Revenue by Application
  21. On-Deck Free LBS Subscribers by Application
  22. On-Deck Free LBA Revenue by Application
  23. Off-Deck Free LBS Subscribers by Application
  24. Off-Deck LBA Revenue by Application
  25. On-Deck Free LBS Subscribers by Application
  26. On-Deck Free LBA Revenue by Application
  27. Off-Deck Free LBS Subscribers by Application
  28. Off-Deck LBA Revenue by Application
  29. On-Deck Free LBS Subscribers by Application
  30. On-Deck Free LBA Revenue by Application
  31. Off-Deck Free LBS Subscribers by Application
  32. Off-Deck LBA Revenue by Application
  33. On-Deck Free LBS Subscribers by Application
  34. On-Deck Free LBA Revenue by Application
  35. Off-Deck Free LBS Subscribers by Application
  36. Off-Deck LBA Revenue by Application
  37. On-Deck Free LBS Subscribers by Application
  38. On-Deck Free LBA Revenue by Application
  39. Off-Deck Free LBS Subscribers by Application
  40. Off-Deck LBA Revenue by Application
  41. On-Deck LBS Subscribers by Application
  42. On-Deck LBS Revenue by Application
  43. Off-Deck LBS Subscribers by Application
  44. Off-Deck LBS Revenue by Application
  45. On-Deck LBS Subscribers by Application
  46. On-Deck LBS Revenue by Application
  47. Off-Deck LBS Subscribers by Application
  48. Off-Deck LBS Revenue by Application
  49. On-Deck LBS Subscribers by Application
  50. On-Deck LBS Revenue by Application
  51. Off-Deck LBS Subscribers by Application
  52. Off-Deck LBS Revenue by Application
  53. On-Deck LBS Subscribers by Application
  54. On-Deck LBS Revenue by Application
  55. Off-Deck LBS Subscribers by Application
  56. Off-Deck LBS Revenue by Application
  57. On-Deck LBS Subscribers by Application
  58. On-Deck LBS Revenue by Application
  59. Off-Deck LBS Subscribers by Application
  60. Off-Deck LBS Revenue by Application
  61. On-Deck LBS Subscribers by Application
  62. On-Deck LBS Revenue by Application
  63. Off-Deck LBS Subscribers by Application
  64. Off-Deck LBS Revenue by Application
  65. On-Deck LBS Subscribers by Application
  66. On-Deck LBS Revenue by Application
  67. Off-Deck LBS Subscribers by Application
  68. Off-Deck LBS Revenue by Application

Figures

  1. On-Deck LBS Model
  2. Off-Deck LBS Model
  3. Estimates of GPS-Enabled Handsets in the United States
  4. Estimated Samsung 2011 Smartphone Product Split
  5. Location-Based Advertising Platform Model
  6. Handset Pre-Installation LBS Model
  7. Operator Pre-Installation LBS Model