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Frost & Sullivan: Proliferation of GPS-enabled Smartphones Spurs Growth of Global Location-based Applications Market

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Thursday, December 12th 2013
Frost & Sullivan | London, UK

Market participants should focus on rolling out indoor location-based and augmented reality applications to widen market potential

LONDON, Dec. 12, 2013 - The global market for location-based applications is poised for rapid growth, as the mass adoption of global positioning system (GPS)-enabled smartphones is encouraging developers to introduce numerous advanced applications.

New analysis from Frost & Sullivan (, Moving in Smart Spaces, finds that indoor connectivity, augmented reality, big data and wearable devices are the key technology trends likely to fuel the uptake of location-based applications. Location-based technology and data can then be combined to facilitate the development of smart spaces in every city and community.

"Location-based application developers have so far focused on the development of outdoor applications due to the adoption of GPS positioning in smartphones," noted Frost & Sullivan Information & Communication Technologies Research Analyst Shuba Ramkumar. "However, as individuals spend more time indoors, there is a need to roll out indoor location-based applications that capitalise on various functionalities such as mapping, navigation and geo-fencing."

Augmented reality technology could also be used to make location-based applications more interactive. Further, the widening ecosystem of wearable devices such as Google Glass and Samsung Galaxy Gear infuses technology into the daily lives of individuals, widening the scope of context-aware applications.

However there are several challenges restricting the growth of the location-based applications market. The lack of standardisation in indoor positioning technologies such as Wi-Fi, sensors and Bluetooth is complicating the development of indoor applications. Location-based application providers will need to wait until wearable device manufacturers address the issues of limited battery life and dependence on smartphones for outdoor connectivity.

Market participants also find it difficult to monetise applications due to the absence of a clear business model. In this scenario, application developers should seek to identify new sources of revenue. They can expedite market expansion by establishing contracts with indoor venues to provide customised applications, and by working with wearable device manufacturers to create related applications.

"Stakeholders should work together to identify the most reliable and accurate indoor positioning technologies that can steer the indoor connectivity market forward," said Ramkumar. "The In-Location Alliance is one such initiative formed by market participants to discuss and resolve issues concerning indoor positioning technologies."

If you are interested in more information on this research, please send an e-mail to Joanna Lewandowska at or Chiara Carella at, Corporate Communications, with your full contact details.

Moving in Smart Spaces (M9E4-65) is part of the Mobile & Wireless Communications Growth Partnership Service programme. Frost & Sullivan's related research services include: The Key Role of Mobile Network Operators in Healthcare Delivery, Southern African Broadband Market Analysis, Argentinean Total Telecommunications Services Market, Latin American Mobile Services Markets Outlook, and European ICT Vertical Market Model. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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