LBS set for rapid growth in Europe

Location-based services in Europe are set for robust growth over the next five years, according to a report from Berg Insight. The firm notes that it expects service revenues for the space could grow at a 12% compound annual rate from approximately $270 million in 2009 to more than $500 million in 2015.
Berg cited local search, navigation services and social networking as the drivers for the market and that it expects one-third of all European mobile subscribers will use some sort of location-enhanced application on a regular basis by 2015.
The firm also noted that the revenue model for location-based services is shifting from a premium add-on to an advertising-funded model. This is highlighted by Google Inc., which has a history of offering its Google Maps application for free to consumers and has recently began providing turn-by-turn navigation through its Android operating system. A move echoed by Nokia Corp. for its devices.
“Location-based services are finally on the verge of mainstream acceptance,” said Andr