Proving the Business Case for the Internet of Things

Steady growth forecast by Berg for mobile location platforms

Steve Rogerson
December 23, 2014
The global market for mobile location platforms looks set to show steady growth in the next few years according to a report from analyst firm Berg Insight. Total location platform revenues are expected to grow at a CAGR of nearly 11.5 per cent between 2013 and 2020, reaching €470m at the end of the forecast period.
Much of the growth is expected to come from the emerging commercial indoor location segment, while the market for location platforms deployed by mobile operators is maturing. Annual revenues for GMLC, SMLC and A-GNSS servers, passive location platforms, as well as middleware deployed by mobile operators are forecasted to grow from €200m in 2013 to €300m in 2020.
“Mobile operators deploy new location platforms and upgrade existing systems mainly to comply with public safety and lawful intercept regulations that are gradually being introduced worldwide,” said André Malm, senior analyst at Berg Insight.
These platforms can also enable commercial location-based services. He said a growing number of mobile operators were also deploying passive location methods that enable mass location of handsets without overloading the network.
Mobile operators are starting to explore opportunities to extract more value from location data gathered from their networks in areas such as network optimisation, customer experience management, mobile marketing and analytics. However, most consumer and enterprise location-based services now use location data obtained directly from GPS or Wifi in handsets and will therefore have a limited impact on location platform market growth.
A broad set of companies are developing indoor location technologies that enable use cases ranging from emergency call location to commercial applications such as navigation, customer engagement and analytics.
“The commercial indoor location market is still at a relatively early stage and has not yet reached mass adoption,” said Malm. “The market has suffered from a lack of cross-platform solutions and confusion among venue owners over which platforms and technologies to use.”
Understanding of the value of indoor location and analytics services is now growing among retailers and venue owners, at the same time as uncertainty over which technologies to deploy decreases.
“Remaining challenges to solve include how to motivate end users to download the venue owner’s app, as well as how to bring customer value that encourages continued use of the app on a regular basis,” said Malm.