NEW YORK, Sept. 10, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
http://www.reportlinker.com/p0332361/LBS-Research-Series-2012.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Portable_Devices
Executive summary
Navigation systems and services for car and pedestrian navigation can be divided into multiple categories. Car manufacturers offer factory installed in-dash navigation systems as standard or optional equipment on a majority of their models sold in developed markets. Drivers that want to add navigation to their existing vehicle can choose among a number of aftermarket solutions. Examples include in-dash navigation systems, Personal Navigation Devices (PNDs) and navigation apps for mobile phones. New device categories such as Internet tablets are also being equipped with GPS and navigation software. At the end of 2011, there were 340 million navigation systems in use worldwide, including an estimated 60 million factory installed and aftermarket in-dash navigation systems, about 150 million PNDs and an estimated 130 million navigation-enabled mobile phones. Even though the share of new cars fitted with factory installed in-dash navigation systems will grow fast as prices decline, the actual penetration of in-dash navigation systems will grow slowly. The average age of vehicles in North America and Europe has grown to about 9 years and is even higher in most other markets. Aftermarket navigation solutions will thus account for a majority of navigation systems sold in the foreseeable future. Since the different solutions are tailored for slightly different use-cases, multiple navigation-capable device solutions can be expected to co-exist in the future.
Many consumers are also likely to use more than one category of navigation capable device. In many developed markets such as Europe and North America where the PND penetration is already high, the PND device category is facing increasing competition from handset-based navigation services and low cost in-dash navigation systems. Worldwide shipments of PNDs fell to about 33 million units in 2011, down from nearly 38 million in 2010. Berg Insight believes that PND shipments in Europe and North America have peaked and will gradually decline to about 7 and 6 million units per annum respectively in 2016. New markets in other parts of the world will only partly compensate for the decline in the mature markets. Worldwide shipments of PNDs are forecasted to gradually decline to 23 million units in 2016. Increasing competition has already forced several vendors to exit the PND segment – either in the most competitive markets or altogether. There is also a consolidation trend among the remaining PND vendors. MiTAC has acquired the PND operations of Navman and the assets of the consumer product division of Magellan Navigation. Garmin completed the acquisition of Navigon in July 2011. United Navigation, which began operations in early 2010, has licensed the rights to use the Falk and Becker brands for navigation solutions. The PND market is now dominated by the three vendors Garmin, TomTom and MiTAC that together maintain a 75 percent market share. These companies have highly integrated operations ranging from hardware and software development to distribution.
Moreover, these companies are now increasingly focusing on in-dash navigation systems. The adoption of handset-based navigation apps and services is increasing along with the popularity of smartphones. The global active installed base of smartphones surpassed 700 million units at the 2011, which is approximately 15 percent of all mobile phones in use. Berg Insight forecasts that smartphone shipments will grow from an estimated 450 million units in 2011 to 1,300 million units in 2016. In the future, virtually all GPS-enabled handsets can be expected to have mapping and navigation software as part of the standard feature set. Today, handset navigation solutions are primarily available as on-board apps with map data stored in the memory of the handset and off-board services that rely on maps stored on a server. Over time, many solutions will converge into hybrid services that store frequently used maps in the internal memory and leverage wireless connectivity to access dynamic content. The main distribution channels for handset navigation apps include mobile network operators, handset vendors and on-device application stores. Free turn-by-turn navigation services have been available for several years from niche players, but the launch of Google Maps Navigation for Android handsets in late 2009 and Nokia Maps with free navigation in early 2010 started a major transformation of the handset navigation market in both Europe and North America. White-label navigation developers are now working with mobile operators to create unique localised offerings and service bundles. Increasingly, navigation service providers are focusing on the freemium business model where the core turn-by-turn navigation service is free and users have the option to purchase additional content and features.
Executive summary
Mobile location-based services (LBS) are gradually achieving mainstream market acceptance. Popular service categories include mapping and navigation, search and information, social networking and entertainment, recreation and fitness as well as tracking. Mapping and navigation is the leading segment in terms of revenues and the second largest in terms of number of active users. Despite continued growth of active users driven by rising adoption of smartphones, revenues for mapping and navigation services are only growing slowly as competition from free and low cost services has intensified. White-label navigation developers are now working with mobile operators to create unique localised offerings and attractive service bundles. Some navigation service providers are focusing on freemium apps where the core turn-by-turn navigation service is free and users have the option to purchase additional content and features.
Usage of search and information services is growing fast as more subscribers adopt mobile Internet services and handsets with improved capabilities. Local search is now the leading LBS category in terms of unique users. The popular social networking services are also experiencing rapidly growing uptake from mobile users. Increasingly, these services add various forms of location support. Berg Insight estimates that the number of active users of location-based services and apps more than doubled in 2011. At the end of the year, about 20 percent of mobile subscribers in Europe are frequent users of location-based services. In North America where adoption of smartphones and GPS-enabled handsets is higher, an estimated one third of all handset users now access location-based services regularly. However, the significant growth in usage and number of active LBS users have not yet resulted in substantial growth in revenues. Total LBS service revenues in the EU 27+2 reached € 205 million in 2010 and Berg Insight forecasts LBS revenues to grow to about € 435 million in 2016. In North America, revenues are forecasted to grow from US$ 620 million in 2010 to an estimated US$ 710 million in 2016.
Ad-funding is already the main source of revenues in many consumer LBS categories. Notable exceptions include the mapping and navigation as well as tracking service categories where ad revenues now account for less than 10 percent of total revenues. Along with increasing usage and a maturing advertising ecosystem, ad revenues will grow both in absolute terms and as a share of total revenues also in the mapping and navigation segment. Many actors in the mobile value chain show great interest in location targeted ads. Although location can be a very valuable targeting attribute for some brands and campaigns, many other attributes are available that can be more relevant. Moreover, several issues – such as user privacy and pricing of location data – need to be resolved before location-based ad campaigns can leave the trial stage and contribute significantly to overall revenues. Historically, mobile operators have been key partners and the main distribution channel for app and service developers. Operators have had a unique position with a direct relationship with a large user base, allowing them to market services, pre-install applications on new handsets, present links to services from their portals and handle end-user billing. This central role is now being challenged by the rising smartphone ecosystems such as Android, iOS and Windows Phone that in many cases integrate key location-based services and give developers access to location data, distribution channels in the form of on-device app stores as well as billing and advertising solutions for monetisation. Developers can also access location data from numerous independent Wi-Fi and cellular base station location database providers.
These location services are well suited for a range of consumer-oriented services primarily targeting smartphone users. Many operators are now opening their location platforms to third party developers and location aggregators that play an important role as intermediaries between mobile operators and developers. Network-based location data is valuable for developers and third parties that need to locate any device, not only GPS-enabled smartphones, without the need to install a client app that collects location data on each device. Most operators' location platforms have a limited capacity and operators therefore maintain relatively high prices for each location look-up. This is a justifiable cost for services where a successful location look-up adds significant value and the developer can charge their customers accordingly. This is the case for a range of enterprise and B2B services including asset tracking, workforce management, authentication and fraud prevention.
Executive summary
Mobile location platforms enable mobile network operators to offer location-based services (LBS). Location platforms typically comprise software extensions to network infrastructure components that together can calculate the position of a handset. Many mobile operators also deploy location middleware that functions as a mediator between the location platform, applications and support systems – and more importantly, provides centralised control of privacy settings for all applications. Mobile location platforms enable three categories of services: public safety services, national security and law enforcement applications, as well as commercial LBS. Nearly 70 percent of all emergency calls are today placed from mobile phones and it can often be difficult for the caller to convey their location accurately to first responders. Automatic location platforms can reduce the time to find the location of the caller. They also enable more efficient handling of simultaneous calls from people reporting the same incident to distinguish single accidents from multiple events. Another use area is public warning systems that can locate and send messages to all mobile users within a geo-fenced area. Government agencies can also use location platforms and data mining systems for border security, critical infrastructure protection and location-enhanced lawful intercept. LBS are services that in some way utilise the geographic location of a handset, either to enhance existing applications, or enable new types of applications.
An example of the first case is search services that use the subscriber's known location as a filter for presenting relevant content. In the second case, location is used as an enabler for new applications that are fully dependent on knowing the location of a user or an asset; examples include navigation and tracking services. Today, countless consumer and corporate services make use of automatic location of handsets or other assets. However, a majority of the services use location data obtained directly from GPS receivers in the handset or various third party location databases rather than directly from operators. technologies can be divided into handset-based technologies (such as GPS) with intelligence in the handset, network-based technologies (for instance Cell-ID, Enhanced Cell- ID and U-TDOA) with intelligence in the network and hybrid technologies (for instance A-GPS) with intelligence in both the handset and the network. Handset-based and hybrid technologies often require additional hardware and software in the handset, while networkbased technologies require deployment of hardware and software in the mobile network. Each technology has different characteristics and ultimately, no single technology performs best in every aspect. The Federal Communications Commission's (FCC) E911 mandates for location of mobile emergency calls released in 1996 was a major driver behind the development of location platforms for the North American market. In Europe, as well as in other developed countries such as Japan and South Korea, the early deployment of location platforms focused on supporting commercial services due to the lack of a clear mandate for emergency services. In the first deployment phase, lasting from 2000 to 2003, operators invested in platforms and ready-made location services. The results were in many cases limited uptake whereby many operators lost interest in LBS as a mass-market proposition. However, governments and telecom regulators in many regions worldwide are now introducing some form of emergency call and lawful intercept mandates that require at least basic location platforms and technologies.
Although the regulators have typically not yet imposed any specific location accuracy requirements as part of the mandates, it is highly likely that more stringent location accuracy will be demanded in the future as technologies mature and costs decrease. An estimated 30 percent of the mobile network operators worldwide have now deployed at least some type of basic location platform. Additional deployments and updates of existing platforms can be expected in most markets in the coming years, primarily driven by government mandates since commercial LBS increasingly rely on alternative location sources including GNSS, Wi-Fi location and third party Cell-ID databases. Berg Insight forecasts that total global annual revenues for GMLC/MPC, SMLC/PDE and SUPL A-GNSS location systems and services will grow from € 150 million in 2010 to € 300 million in 2016. These revenues comprise integration fees and licenses for new platform deployments as well as capacity and technology upgrades, maintenance and associated services.
Executive summary
The mobile channel is getting established as an integral part of the marketing media mix, a process which is eased by the booming smartphone adoption and increasing mobile media consumption. One of the key developments in mobile advertising is the increasing integration of location-sensitivity, which releases the full potential of the mobile channel. A notable divide can be made between static and real-time location-based advertising (LBA). Targeting by static variables involves using information which is part of specific user profiles such as place of residence and work. Real-time location targeting instead uses location information which is gathered when an ad is delivered to a mobile user. Such location-based advertising programs and campaigns leverage the same type of technologies to determine user location as other location-based services (LBS). Common methods include GPS, Cell-ID and Wi-Fi positioning which are all based on real-time information. Targeting by location in combination with other contextual and behavioural segmentation greatly enhances the relevance of mobile advertising.
It has been demonstrated that locationtargeted ads generate considerably higher return than conventional mobile advertising, and the associated eCPM levels are several times higher. Berg Insight estimates that the total global value of the real-time mobile LBA market was € 192 million in 2011, representing 5.0 percent of the total mobile ad spend. Growing at a compound annual growth rate of 90.9 percent, the real-time LBA market is forecasted to be worth € 4.9 billion in 2016, corresponding to 28.3 percent of all mobile advertising and marketing. This means that location-based advertising and marketing will represent more than 4 percent of digital advertising, or 1 percent of the total global ad spend for all media. Asia-Pacific is estimated to be the largest LBA market in 2016, followed by Europe and North America. Key drivers for LBA include the growing attach rates of location technologies in handsets, as well as the increasing consumer acceptance of LBS in general. Local advertising is further a major market, and LBA opens up the mobile channel for new advertisers merchants. The fact that location targeting has higher performance has moreover induced premium rates for publishers and developers. The main barriers to adoption are related to the inherently limited reach of LBA which acts as a mental hurdle for advertisers. Education of advertisers and new methods for campaign performance evaluation are thus called for. Privacy issues can further not be ignored, but can be beneficially handled by privacy control options beyond simple opt-in mechanisms. The demand for hyper-local targeting of ads is so far limited among advertisers, but is bound to increase given the considerable impact such campaigns generate.
The LBA value chain is still forming and there are a large number of players involved in the ecosystem. The industry is fragmented and has not yet reached maturity. Many different companies are involved, ranging from LBA specialists such as Placecast, xAd and LEMON Mobile, to operators including SFR, AT&T and O2, and LBS players such as Telmap, TeleNav and Waze. There is furthermore an abundance of location-aware applications and media which serve geo-targeted ads, with examples such as WHERE, Loopt and Shopkick. Included in the marketplace are moreover coupons and deals providers including Yowza!!, GeoAd and COUPIES, search solutions such as Poynt and Qype, and proximity marketing providers like Qwikker, Proximus Mobility and Scanbuy. A number of traditional mobile advertising players are also active in the LBA space, for example Millennial Media, Madvertise and Nexage, as well as major digital and telecom players such as Google, Apple and Nokia. There are a number of key takeaways from the latest developments in LBA. It has been established that location-targeting improves the effectiveness of mobile marketing campaigns, and greater shares of ad budgets are devoted to LBA among marketers. It is however crucial to ensure sound opt-in procedures and individual privacy measures for consumers. Location is further only one of many components in successful targeting, and marketers must also strive to leverage other contextual and behavioural information. Highprecision real-time geotargeting is today sparsely used, and rightly so as most campaigns do not require targeting with an accuracy of a few meters. Hyper-local campaigns are nevertheless becoming more common. Current important high-volume LBA formats include mobile search and SMS campaigns. Berg Insight however anticipates that geotargeting gradually will become ubiquitous and available across the entire mobile channel.
Executive summary
People tracking solutions that enable a third party to locate a person were introduced in the late 1990s. Today, most people tracking solutions rely on GNSS and mobile communication technologies to determine the location of a person and transmit the data to a third party. Technological advancements have enabled substantial improvements in GPS receiver performance and cost. Small, dedicated battery powered GPS tracking devices suitable for the mass market has become a reality. There are also a growing number of people location apps that leverage the growing installed base of GPS-enabled smartphones. People tracking solutions aimed at the consumer market range from family locator services that provide peace of mind for parents of children and teenagers, to solutions that assist caregivers of seniors and people suffering from various medical conditions. Family locator services have been part of mobile operators' LBS portfolios for many years, but are now facing competition from app developers. The willingness to pay for operator services is declining as consumers' awareness of free people location apps for smartphones has increased significantly in the past 12–18 months. Berg Insight estimates that there were about 20 million users of family locator apps in Europe and North America in August 2012. The demand for dedicated location devices targeting the child and teenager segment is generally low as many parents adopt handset-based solutions.
Numerous device vendors are therefore looking to address the needs of people caring for persons of all ages suffering from various medical conditions, such as autism and other cognitive limitations, epilepsy, cardiac problems and diabetes. These companies are also addressing the market for systems that assist seniors living at home or in care homes. The assistance systems are commonly called telecare systems or social alarms in Europe and Personal Emergency Response Systems (PERS) in the US. Berg Insight estimates that there are already up to 5 million users of the first generation social alarms connected to PSTN networks in Europe and North America. The addressable market for the next generation mobile social alarms is therefore large. Companies from various industries such as fleet management, asset tracking and application development now provide people location services that address the needs of business customers. Mobile workforce management services aim to improve operational efficiency and focus on managing individual employees. Industry sectors leading the adoption of workforce management solutions include construction, distribution and companies with extensive field services. Mobile workforce management is frequently part of fleet management solutions for light commercial vehicle fleets. Applications can in addition be delivered via smartphones. Two-way communication saves time by enabling field staff to be directed to go from one place to another without returning to the central location for receiving new work orders. Cost savings can also be achieved through more efficient time verification and data collection in the field. Lone worker protection services primarily focus on ensuring the security of employees through features such as two-way communication and automatic location. Many lone worker protection services rely on dedicated location devices featuring alarm buttons and man down detection sensors. These devices are typically programmed to send alarms to supervisors or alarm receiving centres in case of emergency.
Berg Insight forecasts that the number of active users of workforce management and dedicated lone worker protection services in Europe and North America will grow from 1.1 million in 2011 to 2.8 million in 2016. Electronic monitoring (EM) of offenders is gradually being adopted globally. EM is used to provide alternative ways of sentencing offenders and reduce the escalating costs for the corrective systems. EM is employed at various stages of the criminal justice system, including at pre-trial, at sentencing and following a period of incarceration. The aim of EM programmes is to increase offender accountability, reduce recidivism rates and enhance public safety by providing an additional tool to traditional methods of community supervision. However, there is still debate over the effectiveness of EM and how to best implement the technologies in various programmes to achieve the goals. The most common forms of EM equipment in use today are RF systems that comprise a transmitter worn by the person being monitored, often in the form of an ankle bracelet. The RF transmitter sends out a signal to a receiver unit that communicates with a monitoring centre to report signal interruptions during curfews or any attempts to tamper with the equipment. Systems using GPS location that allow near real time location of the offender as well as creation of geographic inclusion and exclusion zones are also being used.
Table of Contents
List of Figures viii
Executive summary1
1 Personal navigation solutions3
11 Vehicle fleets and navigation system penetration 4
111 The European passenger car market 4
112 The North American passenger car and light truck market6
12 Overview of personal navigation systems and services7
121 Factory installed in-dash navigation and telematics solutions 8
122 Aftermarket in-dash navigation systems 9
123 Personal Navigation Devices 10
124 Smartphones and mobile phones11
125 Internet tablets and media players12
13 PND categories and segments13
131 Standalone car navigation PNDs 13
132 Embedded PNDs 17
133 Multimode and rugged PNDs 17
134 Truck PNDs 17
14 Handset-based navigation services 18
141 On-board navigation apps 19
142 Off-board navigation services 20
15 Navigation service distribution channels and business models 21
151 Mobile network operators 21
152 Handset vendors 22
153 On-device app stores 22
154 Active handset navigation users 26
2 Map data and content providers27
21 Digital map data and image suppliers29
211 NAVTEQ 30
212 TomTom Maps 32
213 AND 33
214 AutoNavi 34
215 Blom 35
216 CE Info Systems35
217 DigitalGloble36
218 GeoEye36
219 Intermap Technologies 37
2110 OpenStreetMap37
2111 ZENRIN38
22 Traffic information services39
221 Traffic information systems 39
222 RDS-TMC services 40
223 The VICS traffic information system43
224 The TPEG standard43
225 AirSage44
226 Clear Channel Radio's Total Traffic Network 44
227 Decell44
228 INRIX45
229 Mediamobile46
2210 TrafficCast 46
2211 Trafficmaster46
23 Speed camera warning devices and database providers47
231 Coyote Systems 47
232 Cyclops 47
233 FoxyTag48
234 Road Angel48
235 RoadPilot 48
236 Wikango 48
24 Travel guide, POI data and weather information providers49
241 CustomWeather49
242 Foreca 49
243 Fodor's Travel49
244 Langenscheidt50
245 Mairdumont 50
246 NavX 51
247 ViaMichelin 51
248 Wcities 51
25 Directory publishers52
251 PagesJaunes and Mappy 54
252 Truvo 54
253 Yell Group54
3 Navigation software developers 55
31 Technology overview55
311 On-board, off-board and hybrid navigation software56
312 Evolution of navigation software features 56
32 Vendor market shares 58
321 Handset navigation app market shares in Europe59
322 Handset navigation app market shares in North America 60
33 Company profiles and strategies 61
331 ALK Technologies 63
332 Appello Systems 64
333 deCarta65
334 Elektrobit 66
335 Fullpower Technologies67
336 Google67
337 GPS Tuner68
338 Intrinsyc Software68
339 Maction Technologies 69
3310 Mireo69
3311 NavGuard 70
3312 NaviExpert 70
3313 Navitel70
3314 NAVITIME 71
3315 Navmii71
3316 NDrive72
3317 NNG73
3318 PH Informatica74
3319 ROUTE 6674
3320 Skobbler 75
3321 Sygic76
3322 TeleCommunication Systems 76
3323 TeleNav77
3324 Telmap78
3325 UbiEst 80
3326 Waze80
3327 Wikitude81
3328 Yapp Mobile 81
4 Mobile operator service offerings 83
41 Navigation services from mobile operators in North America83
411 AT&T84
412 Bell Mobility 85
413 MetroPCS 85
414 Rogers Wireless 86
415 Sprint Nextel 86
416 TELUS 87
417 Verizon Wireless87
42 Navigation services from mobile operators in Europe 88
421 Deutsche Telekom Group 90
422 Orange Group 91
423 SFR93
424 Telefónica Group93
425 Telekom Austria Group 94
426 TeliaSonera Group 95
427 Vodafone Group96
43 Navigation services from mobile operators in Asia Pacific 98
431 Country profile: Australia99
432 Country profile: Japan100
433 Country profile: South Korea102
434 SingTel Group 103
435 Tata Indicom104
436 Vodafone New Zealand104
44 Navigation services in other countries 104
441 Country profile: Israel 105
442 Country profile: South Africa106
443 América Móvil 107
444 NII Holdings107
445 Telefónica Latin America108
446 Mobile TeleSystems 108
5 Device vendor profiles 109
51 PND market developments 109
511 PND feature evolution 109
512 Market consolidation111
52 PND shipments and vendor market shares 113
521 Shipments by geographical region113
522 PND hardware revenues 114
523 Vendor market shares 115
53 PND vendor profiles and strategies117
531 Garmin117
532 Navigon 121
533 TomTom123
534 MiTAC127
535 Airis129
536 AvMap 129
537 Mappy/Logicom 129
538 MEDION 130
539 Panasonic131
5310 Shinco 131
5311 Sony 132
5312 Thinkware Systems 132
5313 UniStrong 133
5314 United Navigation133
54 Handset market developments 135
541 Smartphone evolution 137
542 Handset vendor market shares138
543 Handset vendor navigation service strategies 138
55 Handset vendor profiles and strategies 140
551 Apple 140
552 HTC 141
553 LG Electronics 142
554 Motorola 142
555 Nokia 143
556 RIM 145
557 Samsung Electronics 146
558 Sony Ericsson 147
6 Market analysis and forecasts 149
61 Navigation industry trends149
611 The total navigation system penetration rate is still low globally150
612 Low cost in-dash navigation systems drive take rates151
613 Evolution of handset navigation distribution channels 152
614 Evolution of handset navigation business models 153
62 Regional markets156
621 The European mobile navigation market 157
622 The European PND market 158
623 The North American mobile navigation market 160
624 The North American PND market161
625 The Rest of World mobile navigation market 163
626 The Rest of World PND market 164
Glossary 167
List of Figures
Figure 11: The European passenger car market (2011) 5
Figure 12: Car navigation system shipments in Europe (2002–2011)5
Figure 13: The North American passenger car and light truck market (2011)6
Figure 14: Car navigation system shipments in North America (2002–2011) 7
Figure 15: Main car navigation system categories 8
Figure 16: Evolution of portable navigation solutions 10
Figure 17: Examples of GPS-enabled Internet tablets (December 2011) 12
Figure 18: PND feature comparison by price segment 14
Figure 19: Latest Garmin and TomTom connected PNDs 16
Figure 110: On-board navigation application screenshots 19
Figure 111: Off-board navigation application screenshots20
Figure 112: Examples of mobile app stores (December 2011)23
Figure 113: Examples of Android, BlackBerry and iPhone navigation app developers 25
Figure 114: Active navigation users by distribution channel (World 2008–2011) 26
Figure 21: Examples of content providers28
Figure 22: Major international digital map data suppliers 29
Figure 23: Traffic information platform40
Figure 24: Examples of TMC service providers (2010)42
Figure 25: Travel guide publishers 50
Figure 26: Leading directory service providers (2011) 52
Figure 27: Directory provider distribution channels and business models53
Figure 31: Mapping and navigation server platform55
Figure 32: Navigation app and service providers by active users (World Q4-2011)58
Figure 33: Handset navigation service market shares (EU27+2 2007–2011) 59
Figure 34: Handset navigation service market shares (North America 2007–2011) 60
Figure 35: Handset navigation app developers62
Figure 41: Navigation offerings from North American operators (December 2011) 84
Figure 42: Navigation offerings from European operators (November 2011)89
Figure 43: Examples of navigation offerings from APAC operators (December 2011)98
Figure 51: PND feature penetration in Europe and North America (2007–2011)110
Figure 52: PND brands by original industry 111
Figure 53: Global annual PND shipments and revenues (2005–2011) 113
Figure 54: PND shipments by region (Million units 2007–2011) 114
Figure 55: PND vendor market shares (World 2006–2011)115
Figure 56: PND vendor market shares (Europe 2006–2011) 116
Figure 57: PND vendor market shares (North America 2006–2011) 116
Figure 58: Examples of Garmin nüvi PNDs 119
Figure 59: Examples of TomTom PNDs and connected PNDs126
Figure 510: Smartphone shipments by vendor and OS (World Q3-2011)136
Figure 61: PND and in-dash navigation system penetration (World 2007–2011) 150
Figure 62: New business models for mobile navigation services 153
Figure 63: Smartphone, GPS-enabled Internet tablet and PND shipments (2010–2016)156
Figure 64: Navigation apps and service revenues (EU27+2 2010–2016) 157
Figure 65: Annual PND shipments in Europe (2006–2016)158
Figure 66: PND ASP, device and service revenues in Europe (2010–2016)159
Figure 67: Navigation app and service revenues (North America 2010–2016)160
Figure 68: Annual PND shipments in North America (2006–2016) 161
Figure 69: PND ASP, device and service revenues in North America (2010–2016)162
Figure 610: Navigation app and service revenues (ROW 2010–2016)163
Figure 611: Annual PND shipments in ROW (2006–2016) 164
Figure 612: PND ASP, device and service revenues in ROW (2010–2016) 165
Table of Contents
Executive summary1
1 Introduction to location-based services 3
11 Definition of mobile location-based services3
12 Mobile communication services4
121 Mobile voice and SMS service revenues 4
122 Mobile data and application revenues 5
123 Location apps and service revenues 7
13 Mobile LBS categories8
131 Mapping and navigation9
132 Local search and information9
133 Social networking and entertainment 10
134 Recreation and fitness10
135 Tracking services 11
136 Other services 11
14 Mobile app monetisation strategies and business models13
141 Free apps 13
142 Paid apps 13
143 Freemium apps and in-app payments14
144 Ad-funding14
145 New channel to market 15
146 Bundled products and services 15
147 Mobile app business model trends16
15 Mobile location technologies and platforms 17
151 Mobile network-based location technologies 18
152 GNSS: GPS, GLONASS, Galileo and Compass 18
153 Hybrid and mixed mode technologies20
154 Accuracy requirements for LBS 21
16 The regulatory environment in Europe and North America 23
161 European emergency call and privacy regulations 23
162 LBS regulatory environment in the US24
163 Emergency call regulations in Canada 26
2 Smartphone ecosystems27
21 Smartphone OS platforms27
211 Android29
212 iOS29
213 Windows Phone 7 30
214 Symbian 31
215 BlackBerry OS and BBX31
216 Samsung's Bada platform32
22 App stores33
221 Android Market35
222 Apple App Store 35
223 BlackBerry App World36
224 Nokia Ovi Store 36
225 Windows Phone Marketplace37
23 Ad networks and in-app ad solutions38
231 Apple iAd40
232 RIM BlackBerry Advertising Service41
233 Microsoft Windows Phone 7 and Microsoft Advertising 42
234 Nokia in-app advertising and NAVTEQ Media Solutions42
235 Google Admob43
24 Leading smartphone vendors 43
241 Apple 45
242 HTC 45
243 LG Electronics 46
244 Motorola Mobility46
245 Nokia 47
246 RIM 48
247 Samsung Electronics 48
248 Sony Ericsson 49
25 Industry analysis49
251 New vertical silos50
252 Towards a complete LBS stack 51
253 Operator strategies51
254 Handset vendor strategies 52
255 The mobile web, HTML5 web apps and native apps53
3 Operator LBS offerings and strategies 55
31 The European operator LBS market55
311 3 Group 58
312 Deutsche Telekom Group 58
313 KPN Group 59
314 Orange Group 59
315 Telecom Italia Mobile 60
316 Telefónica Group61
317 Telenor Group 61
318 TeliaSonera Group 62
319 Vodafone Group63
32 The North American operator LBS market 64
321 AT&T Mobility 66
322 Bell Mobility 67
323 MetroPCS 67
324 Rogers Wireless 67
325 Sprint Nextel 68
326 TELUS 68
327 T-Mobile USA 69
328 Verizon Wireless70
33 Location aggregators and Location-as-a-Service providers 71
331 Deveryware71
332 LOC-AID 71
333 Location Labs72
334 Lociloci 73
335 Mobile Commerce73
336 TechnoCom74
34 Industry analysis75
341 Organisational capabilities and goals limit operator's ability to provide LBS75
342 Smartphone platforms challenge operators' central role 76
343 The rise of third party developers and apps 76
4 Key LBS categories 79
41 Mapping and navigation79
411 Mapping and routing services79
412 Traffic information services 82
413 Turn-by-turn navigation services84
414 Mapping and navigation industry trends 85
415 Mobile operator service offerings88
416 Handset vendor offerings90
417 App stores and service providers 92
418 Key market players92
42 Local search and information102
421 Directory services103
422 Local discovery and review services106
423 Travel planning, guides and information services 107
424 Shopping and coupon services 109
43 Social networking and entertainment111
431 Social networking and community services 112
432 Check-in services 115
433 Friendfinder services 116
434 Chat and instant messaging services 117
435 Location-based games118
44 Recreation and fitness 120
441 Geocaching apps120
442 Outdoor navigation120
443 Sports tracking apps 121
45 Tracking services123
451 Family locator services123
452 Smartphone tracking apps125
453 Enterprise tracking services 126
5 Market analysis and forecasts 131
51 Summary of the LBS market 131
511 The European LBS market131
512 The North American LBS market 132
52 Mobile advertising and location 133
521 Challenges and opportunities for mobile advertising 133
522 Location can improve ROI for advertisers134
53 Vertical market trends135
531 Mapping and navigation services become free for end-users135
532 Search and information services growth driven by smartphone uptake 138
533 Social networking and entertainment services gradually add location 139
534 Smartphones are increasingly used as recreation and fitness devices 141
535 Corporate efficiency investments drive tracking service revenues142
Glossary 145
List of Figures
Figure 11: Mobile subscriptions by region (World Q4-2010) 4
Figure 12: Wireless service revenues (World 2010) 5
Figure 13: Smartphone adoption and market shares (Western Europe 2009–2011) 6
Figure 14: Smartphone adoption and market shares (North America 2009–2011) 6
Figure 15: Mobile location-based service categories8
Figure 16: Free versus paid apps available for iOS and Android devices (May 2011) 13
Figure 17: LBS system overview17
Figure 18: Assisted GPS technologies 19
Figure 19: Accuracy requirements for LBS services22
Figure 21: Smartphone shipments by vendor and OS (World Q3-2011)28
Figure 22: Leading mobile app stores (Q3-2011)34
Figure 23: Examples of mobile ad networks 39
Figure 24: Smartphone vendor revenues and profits (H1-2011)44
Figure 31: Mobile operators by number of subscribers (EU27+2 Q2-2011) 56
Figure 32: LBS offered by mobile operators (Europe 2008–2011)57
Figure 33: Mobile operators by number of subscribers (North America Q2-2011)65
Figure 41: Mapping app and service offerings 80
Figure 42: Examples of mapping and routing services marketed by operators (2011)81
Figure 43: Traffic information platform82
Figure 44: Traffic information apps and services83
Figure 45: Turn-by-turn navigation system overview84
Figure 46: New business models for mobile navigation services 86
Figure 47: Navigation offerings from European operators (October 2011)89
Figure 48: Navigation offerings from North American operators (September 2011) 90
Figure 49: Android, BlackBerry and iPhone turn-by-turn navigation apps91
Figure 410: Navigation app and service providers by active users (World Q3-2011)93
Figure 411: Local search and information services marketed by operators (2011)103
Figure 412: Leading directory service providers (2011)104
Figure 413: Mobile directory service usage and app downloads (EU 27+2 2009–2011) 105
Figure 414: Directory provider distribution channels and business models106
Figure 415: Local discovery and review services 107
Figure 416: Online travel companies108
Figure 417: Travel guide publishers 109
Figure 418: Shopping assistant and coupon services 110
Figure 419: Social networking and entertainment service segments 111
Figure 420: Top 10 social networks (World 2011)113
Figure 421: Location-enhanced community and social networking services (2011)114
Figure 422: Social networking services with check-in feature (World 2011)115
Figure 423: Examples of Friendfinder services (2011) 116
Figure 424: Location-enhanced chat and IM services (2011) 117
Figure 425: Examples of location-based game developers (2011)119
Figure 426: Examples of outdoor navigation app developers (2011) 121
Figure 427: Examples of sports tracking app developers (2011)122
Figure 428: Operator marketed people tracking services (2011)124
Figure 429: Cross network people tracking services using Cell-ID (2011) 125
Figure 430: People tracking apps (2011) 126
Figure 431: Examples of fleet management services marketed by operators (2011)128
Figure 432: Workforce management services marketed by operators (2011)129
Figure 51: LBS revenue forecast (EU27+2 2009–2016) 132
Figure 52: LBS revenue forecast (North America 2009–2016) 133
Figure 53: Mapping and navigation service revenues (EU27+2 2009–2016)136
Figure 54: Mapping and navigation service revenues (North America 2009–2016) 137
Figure 55: Search and information service revenues (EU27+2 2009–2016) 138
Figure 56: Search and information service revenues (North America 2009–2016)139
Figure 57: Social networking and entertainment revenues (EU27+2 2009–2016) 140
Figure 58: Social networking and entertainment revenues (North America 2009–2016)141
Figure 59: Recreation and fitness revenues (EU27+2 2009–2016) 142
Figure 510: Recreation and fitness revenues (North America 2009–2016)142
Figure 511: Tracking service revenues (EU27+2 2009–2016)143
Figure 512: Tracking service revenues (North America 2009–2016) 144
Table of Contents
Executive summary1
1 Introduction to location platforms3
11 Location platforms and location-based services3
111 Overview of mobile location platforms4
112 A brief history of location platforms and services 4
12 Mobile communication services6
121 Mobile voice and data subscribers 7
122 Mobile voice and SMS service revenues 8
123 Mobile data and application revenues 8
124 Location apps and service revenues 9
13 Mobile location platforms and technologies 10
131 Mobile location platforms10
132 Mobile location technologies 11
133 Location middleware and GIS13
14 The mobile LBS value chain14
141 Location platform and network equipment vendors 14
142 Location technology developers15
143 LBS middleware vendors 16
144 Mobile network operators 16
145 Location aggregators 16
146 Handset manufacturers17
147 Mobile application developers and service providers 18
15 Location platform pricing models19
151 Capacity-based model 19
152 Transaction-based model 20
153 Subscriber-based model20
16 Telecoms regulations drive location platform deployments 21
161 European emergency call and privacy regulations 21
162 LBS regulatory environment in the US23
163 Emergency call regulations in Australia25
164 Emergency call regulations in Canada 25
165 Emergency call regulations in Japan26
2 Technology overview27
21 Mobile network location platforms 28
211 Location architecture for GSM/UMTS networks28
212 Location architecture for LTE networks 29
213 Control Plane and User Plane location platforms 30
214 OMA SUPL 10 31
215 OMA SUPL 20 32
216 OMA SUPL 30 33
22 Network-based positioning technologies34
221 Cell-ID34
222 Enhanced Cell-ID and RF Pattern Matching methods36
223 E-OTD and OTDOA37
224 Uplink Time Difference of Arrival (U-TDOA) 37
225 Location platforms and technologies in 3GPP2 networks39
226 Location in converged IP networks40
23 GNSS and hybrid location technologies 41
231 GNSS: GPS, GLONASS, Galileo and Compass 41
232 Assisted GPS and A-GNSS44
233 Hybrid, mixed mode and indoor location technologies46
24 Theoretical limitations of positioning technologies 47
3 Commercial deployments51
31 Platform deployments in Europe52
311 3 Group 55
312 Deutsche Telekom Group 55
313 KPN Group 56
314 Orange Group 56
315 Telecom Italia Mobile 57
316 Telefónica Group58
317 Telenor Group 58
318 TeliaSonera Group 59
319 Vodafone Group60
32 Platform deployments in the Americas61
321 AT&T Mobility 63
322 Bell Mobility 63
323 Rogers Wireless 64
324 Sprint Nextel 64
325 TELUS 64
326 Verizon Wireless65
327 Wind Mobile65
33 Platform deployments in Asia-Pacific 65
331 BSNL 67
332 China Mobile 67
333 NTT DoCoMo 67
334 Telstra68
335 Telkomsel 68
34 Platform deployments in ROW69
4 Market forecasts and trends 71
41 LBS market trends 71
411 Emergency call mandates remain the key driver for platform deployments 72
412 Location-enabled lawful intercept 72
413 LBS service revenue forecast73
42 Handset market trends 74
421 Smartphones74
422 GPS attach rates driven by higher smartphone sales 75
423 Proliferation of GPS-enabled GSM/WCDMA handset models76
424 GPS-enabled GSM/WCDMA handset shipment forecasts by segment 77
43 Location platform deployments78
431 Vendor market shares 78
432 GMLC and SMLC platform deployment forecasts 79
433 SUPL A-GPS server deployment forecast81
434 Location middleware deployment forecast82
5 Location platform and technology vendor profiles85
51 Location platform and infrastructure vendors 85
511 Alcatel-Lucent87
512 CommScope 88
513 Creativity Software89
514 Ericsson90
515 Mobile Arts 91
516 Nokia Siemens Networks 92
517 Oksijen93
518 Openwave 94
519 Redknee 95
5110 Septier 95
5111 TeleCommunication Systems 96
5112 TruePosition 98
52 Location technology developers 100
521 Broadcom102
522 CSR 103
523 GBSD Technologies104
524 GloPos Technologies 105
525 Intersec105
526 Location Labs106
527 Navizon107
528 Polaris Wireless 107
529 Pole Star 108
5210 Qualcomm109
5211 Rx Networks 110
5212 Skyhook Wireless111
53 Middleware vendors 112
531 CellVision113
532 Genasys 114
533 Mobilaris 115
534 Reach-U116
535 Telenity 117
Glossary 119
List of Figures
Figure 11: Wireless cellular subscribers by standard (World Q4-2010)6
Figure 12: Mobile subscriptions by region (World Q4-2010) 7
Figure 13: Wireless service revenues (World 2010) 9
Figure 14: Mobile location system overview10
Figure 15: Overview of the LBS value chain 15
Figure 16: Mobile location-based service categories18
Figure 17: Capacity-based price model 19
Figure 18: Transaction-based price model20
Figure 21: Location architecture overview29
Figure 22: Cellular frequency reuse pattern 34
Figure 23: Cell-ID location methods 35
Figure 24: U-TDOA location38
Figure 25: Location Information Server in converged IP networks 40
Figure 26: Assisted GPS technologies 45
Figure 27: Performance and limiting factors for key positioning technologies 48
Figure 31: Location infrastructure and technology vendor customer references 51
Figure 32: Location infrastructure deployments in Europe 52
Figure 33: Location infrastructure deployments in the Americas 61
Figure 34: Location infrastructure deployments in Asia-Pacific 66
Figure 35: Location infrastructure deployments in ROW69
Figure 41: Emergency and commercial LBS revenue forecast (World 2010–2016) 73
Figure 42: Handset shipments by segment (World 2005–2010) 74
Figure 43: Number of GPS-enabled GSM/WCDMA handset models available 76
Figure 44: GPS attach rate forecast by handset segment (World 2009–2015)77
Figure 45: Location infrastructure vendor market shares (World 2011)78
Figure 46: Location platform revenues (World 2010–2016) 80
Figure 51: Location infrastructure and technology vendors85
Figure 52: Location infrastructure and technology product offerings by vendor86
Figure 53: Examples of location technology developers 100
Figure 54: Middleware vendor customer references113
Table of Contents
Executive summary1
1 Advertising and the mobile channel 3
11 Advertising and digital media 3
111 The marketing and advertising industry3
112 The Internet media channel 6
113 The mobile media channel7
12 Mobile advertising and marketing 10
121 The mobile handset as an advertising platform11
122 Advertising on the mobile handset 13
123 The mobile advertising ecosystem 15
13 Mobile media channels and formats 16
131 Messaging16
132 Mobile web advertisement 20
133 Mobile applications 25
14 Mobile marketing industry overview30
141 Factors influencing the potential market value of mobile advertising31
142 Current state and future trends 32
2 Mobile location technologies and services 33
21 Mobile network location architectures and platforms 33
211 Location architecture for GSM/UMTS networks34
212 Location architecture for LTE networks 35
213 Control Plane and User Plane location platforms36
214 Probe-based location platforms37
22 Mobile location technologies and methods 38
221 Cell-ID38
222 Enhanced Cell-ID 40
223 RF Pattern Matching40
224 E-OTD, OTDOA and U-TDOA40
225 GNSS: GPS, GLONASS, Galileo and Compass 41
226 Bluetooth, NFC and Wi-Fi positioning42
227 Hybrid, mixed mode and indoor location technologies43
228 Theoretical limitations of positioning technologies44
23 Overview of mobile location-based services 45
231 Mapping and navigation46
232 Local search and information48
233 Social networking and entertainment 49
234 Recreation and fitness50
235 Tracking services 51
3 Mobile location-based advertising and marketing 53
31 Definitions and variants of LBA53
311 Static versus real-time location-targeting54
312 Push and pull LBA55
313 LBA formats56
32 Market receptiveness60
321 Advertiser adoption 60
322 Outcomes of different LBA strategies 61
323 Consumer attitudes 63
324 Privacy concerns65
33 Case studies 66
331 The North Face drives foot traffic with LBA program delivered by Placecast67
332 Operator Zain Kuwait enters the LBA space with AdZone platform 67
333 SPH a pioneer in location-based advertising in Singapore 68
334 LBA solution from NAVTEQ delivers impressive results for McDonald's68
335 VW engage in Wi-Fi-based marketing through JiWire 69
336 Boloco taps SCVNGR to encourage repeat visits69
337 Expedia creates award winning location-based mobile website using HTML5 70
338 McDonald's engages customers in billboard games 70
339 MINI's location-based reality game attracts thousands of players 71
3310 Rovio introduces a location-dimension to the Angry Birds game 71
3311 QderoPateo and Kommunity Kiosk enable Bluetooth marketing at hotels 72
3312 Movie theatre chain partners with ChaCha to promote Twilight premiere 72
4 Market forecasts and trends 73
41 LBA industry analysis 73
411 Classification of LBA offerings73
412 LBA specialists 74
413 Mobile operators 75
414 LBS and navigation providers 76
415 Location-aware applications and media 76
416 Mobile coupons and deals providers77
417 Mobile search providers77
418 Proximity marketing providers 78
419 Traditional mobile advertising players 79
4110 Major digital and telecom players 79
4111 Mergers and acquisitions80
42 LBA landscape trends 82
421 Drivers for success82
422 Barriers to adoption84
423 Overcoming the barriers 85
43 Market forecasts 86
431 Total, digital and mobile advertising market value forecasts86
432 LBA market value forecast 88
44 Final conclusions90
441 Location filtering improves the effectiveness of mobile marketing campaigns 90
442 Greater shares of ad budgets devoted to LBA among marketers91
443 Location is but one of many valuable opt-in variables91
444 High-precision real-time geotargeting is sparsely used 91
445 Mobile search and SMS campaigns are important high-volume LBA formats92
446 Location-targeting will eventually become ubiquitous92
5 Company profiles and strategies93
51 LBA specialists94
511 AdMoove 94
512 Chalkboard95
513 CityGrid Media97
514 LEMON Mobile 98
515 Placecast 100
516 xAd 101
517 Xtify102
518 YOOSE 104
52 Mobile operators105
521 AT&T Mobility 105
522 Orange Group 108
523 SFR110
524 Telefónica Group112
53 LBS and navigation providers 113
531 Appello Systems 114
532 Intersec115
533 TeleNav117
534 Telmap119
535 TomTom120
536 Waze Mobile122
54 Location-aware applications and media 124
541 Foursquare 124
542 Loopt 126
543 Shopkick127
544 WHERE129
55 Mobile coupons and deals providers 130
551 COUPIES130
552 GeoAd 132
553 Groupon 133
554 ThinkNear 135
555 Yowza!!136
56 Mobile search providers 137
561 Mobile Commerce137
562 Poynt 139
563 Qype140
564 Yell Group142
57 Proximity marketing providers143
571 BLIP Systems 143
572 Proximus Mobility 145
573 Qwikker 146
574 Scanbuy 148
58 Traditional mobile advertising players149
581 InMobi149
582 Jumptap 151
583 Madvertise 152
584 Millennial Media154
585 Nexage 155
586 Sofialys 156
59 Major digital and telecom players 158
591 Apple 158
592 Facebook 160
593 Google162
594 Microsoft164
595 Nokia 165
596 Yahoo! 167
Glossary 171
List of Figures
Figure 11: Global advertisement expenditure by media (World 2010)4
Figure 12: Top 20 advertisers (World 2010) 5
Figure 13: Online advertisement expenditure by region (World 2010) 7
Figure 14: Mobile subscriptions by region (World Q4-2010) 8
Figure 15: Stakeholders in the mobile marketing value chain 16
Figure 16: SMS ads – number of receivers and response rates (EU5 September 2010) 17
Figure 21: Location architecture overview34
Figure 22: Cellular frequency reuse pattern 38
Figure 23: Cell-ID location methods 39
Figure 24: Performance and limiting factors for key positioning technologies 45
Figure 25: Navigation app and service providers by active users (World Q3-2011)47
Figure 31: Examples of location accuracies suitable for LBA 53
Figure 41: Categorisation of LBA players 74
Figure 42: Acquisitions in the LBA ecosystem (2009–2012) 81
Figure 43: Total, digital and mobile ad revenues by region (World 2010–2016) 87
Figure 44: LBA revenues and forecasts by region (World 2010–2016)89
Figure 51: Overview of LBA industry players93
Figure 52: European operator offerings powered by Appello Systems (October 2011)115
Figure 53: North American operator offerings powered by TeleNav (September 2011) 118
Figure 54: Waze user interface and example of location marker and expanded ad123
Figure 55: Loopt user interface, Qs and Groupon Now! deals notifications 126
Figure 56: Groupon map UI on iPhone 134
Figure 57: Screenshots from Qype for iPhone and Android 141
To order this report:
Portable_Devices Industry: LBS Research Series 2012
Contact Nicolas: [email protected]
US: (805)-652-2626
Intl: +1 805-652-2626
SOURCE Reportlinker
Share this article