LBS Revenues to Hit €825m in Europe in 2017
Mobile LBS (Location-Based Service) revenues in Europe are forecast to hit €825m (£708m) in 2017, according to research from Berg Insight. That's a projected CAGR (Compound Annual Growth Rate) of 20.5 per cent over the next five years, up from €325m in 2012.
By comparison, the LBS market in North America is expected to reach $1.3bn (£831m) in 2017. However, from a much higher startpoint - $835m in 2012 - LBS will see less pronounced growth in North America, with a CAGR of 9.2 per cent.
As it stands, an estimated 50 per cent of Americans accessing a location-enhanced app of some variety on a monthly basis, compared to 40 per cent in Europea - a difference Berg puts down to the larger installed base of GPS-enabled handsets in the region.
“Smartphones are the most important enabler for LBS adoption in general”, said André Malm, senior analyst at Berg Insight. “The installed base of smartphones in Europe has now reached 45 percent of total handsets and already surpassed 55 percent in North America.”