New hybrid positioning technologies are expected to help drive the mobile location-based services market to exceed $12 billion by 2014, according to a new report from Juniper Research (News - Alert).

 

Also contributing will be increased apps store usage and smartphone adoption, the report’s authors said, mentioning “a surge in application storefront launches.”

 

The report found that while MLBS had experienced “a number of false dawns” over the 2000-2007 period, improvements in handset user interfaces –hello iPhone (News - Alert) – together with easier consumer access to an array of app distribution channels “ led to greater interest from service providers in providing MLBS applications.”

 

In addition, growth was being further facilitated by the deployment of high capacity network infrastructure and attendant increases in mobile Internet adoption, providing greater opportunities for browser-based services.

 

The Juniper report noted that advertising was likely to form an increasing share of MLBS-related revenues over the next five years: According to report co-author Dr. Windsor Holden, “Location-based applications are extremely interesting for brands and retailers in that they allow those companies to direct consumers to outlets in their vicinity while simultaneously providing information about the products on offer.”

 

When these are allied to measures such as mobile coupons and vouchers, Holden said, “you have the combination of information and financial incentive which can be compelling for consumers.”

The research also found that improving the user experience of MLBS on feature phones will be “key in driving usage beyond the core smartphone base.”

 

And despite the confluence of factors driving growth, deployments may still be affected by constraints, including privacy and information security, the report cautions.

 

Service usage will be highest in the Far East and China over the next five years, according to the report, but the greatest revenues will come from Western Europe.

 

Juniper Research used interviews, case studies and analysis from representatives of organizations in this area of the mobile industry.