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January 2001
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Location Based Services revenues to grow to $40.7 billion in 2006 : Allied Business Intelligence
OYSTER BAY, N.Y., Jan. 19 -- The nascent location based
services (LBS) industry stands on the brink of tremendous growth, according to
the findings in a new study from Allied Business Intelligence Inc (ABI). ABI's
report, "Location Based Services: A Strategic Analysis of Wireless
Technologies, Markets and Trends" report indicates that world LBS revenues
will grow from approximately $1 billion in 2000 to over $40 billion in 2006.
This growth will represent a compound annual average growth rate of 81%.
"Many factors will contribute to LBS revenue growth from virtually nothing
today," said ABI analyst, Frank Viquez, the author of the report. "Despite the
obvious US Enhanced 911 mandate, which calls for US wireless carriers to begin
selling automatic location identification (ALI) capable handsets by the end of
2001, carriers are also looking for new revenue streams and newer ways to
deliver compelling services, in order to promote customer loyalty and to
reduce churn."
Most carriers have already stated their plans to pursue either network or
handset-based location fixing technologies in their networks. Sprint Corp's
recent announcement, regarding its plan to incorporate GPS chips into its
handsets beginning the middle of this year, will be a big shot in the arm for
the burgeoning LBS industry, assuming that the handsets are delivered on time.
Several companies are wrapping up initial LBS and location-relevant
wireless advertising test markets, and have been reporting very positive
results. However, possible threats toward the development of the LBS industry
lie in concerns over privacy issues and unsolicited wireless advertising. The
study shows that this should not be a major concern for subscribers, because
the carriers, application and content developers, and infrastructure providers
alike have invested millions of dollars in the research and development of
LBS; the last thing they want to do is put the LBS consumer in a vulnerable
position, so their focus is to empower consumers and to protect them from such
dangers by offering them 100% opt-in solutions.
LBS01 covers the US, Europe, Japan, Latin America and the rest of the
world markets for LBS and wireless subscribers, service revenues, GPS
equipment and components, mcommerce, vcommerce and Bluetooth.
Allied Business Intelligence Inc is an Oyster Bay, NY-based technology
research think tank specializing in communications and emerging technology
markets. ABI publishes strategic research on the broadband, wireless,
electronics, networking and energy industries.
Details of these studies can be found at http://www.alliedworld.com
or call 516-624-3113 for more information.
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