According to analysis from Frost & Sullivan, 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.
The report 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.”
The report highlights that augmented reality technology could also be used to make location-based applications more interactive. Adding that, 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.
The report also identifies that there are several challenges restricting the growth of the location-based applications market. Highlighting that the lack of standardisation in indoor positioning technologies such as Wi-Fi, sensors and Bluetooth is complicating the development of indoor applications. It also adds that 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.
Analysts working on the report identified that market participants find it difficult to monetise applications due to the absence of a clear business model. It states that, in this scenario, application developers should seek to identify new sources of revenue. Suggesting, 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.”
Frost & Sullivan