In its latest research report, Berg Insight forecasts that mobile location-based service revenues in Europe will grow from 220 million EUR in 2009 at a CAGR of 12% to reach 420 million EUR in 2015. Local search, navigation services and social networking will lead the way in terms of number of users.
According to the research company, one third of all Europe’s mobile subscribers will use some kind of location-enhanced application on a regular basis by 2015, with the social networking category forecasted to experience the highest growth in the coming years.
André Malm, Berg Insight’s Senior Analyst says that integration of GPS in handsets is an important driver. The installed base of GPS handsets in Europe has recently surpassed 15% of total handsets and will increase to 50% three years from now.
As for the revenue model, it’s the mobile advertising that will dominate the space in the future. However, because the mobile advertising ecosystem is still nascent, it will take some years before a successful model has been established that allows advertisers to reach out to a critical mass of active users…