Mobile location center (MLC) licensing revenues will grow from $560 million in 2010 to $1.8 billion in 2015, at which point they will reach saturation, according to ABI Research.
US Share of Global MLC Licensing Market Diminishes
This year, the US is expected to represent roughly two-thirds of the global MLC licensing market. By 2011, that share will drop to about half, and drop further to slightly more than a third by 2015. Asia-Pacific’s share will be approximately equal to that of the US by 2015, with Western Europe and Latin America tied for the next-largest market share. Eastern Europe will then have a slightly larger market share than Canada and Africa-Middle East.
Mobile Licensing Revenues Move Past Emergency Calling, Smartphone Apps
In the past, MLC licensing revenues were largely driven by the E911 emergency calling market in the US. However, in the future, both the launch of carrier-grade location based services (LBS) and governmental safety and security requirements will boost MLC revenues in other regions such as Europe, Latin America, Africa and the Middle East, and Asia-Pacific.
In addition, recently there has been an increase in the popularity of consumer LBS applications on smartphone application stores such as Apple’s iTunes. However, ABI Research believes there is still a large opportunity for carriers to invest in network-based positioning platforms for the provisioning of mission-critical person-tracking, as well as enterprise LBS services including asset tracking and workforce management.
At the same time governments across the globe are taking the lead in investing in network-based positioning for lawful intercept, emergency calling and national security purposes, due to its superior indoor coverage and overall reliability compared with GPS, as it does not rely on handset functionality.
Mobile LBS Ready to Move
Global market revenues for mobile LBS and location-enabled mobile apps should reach more than $12.7 billion by 2014, according to Juniper Research. Juniper finds that the greatest number of users is currently in the Far East and China, as Japan and South Korea were early adopters of mobile LBS technology. However, as the Chinese market develops and continues to have better access to 3G mobile networks, China will become the number one market for mobile LBS. Juniper believes location-sensitive mobile advertising will monetize the market.