GPS-Enabled Smartphones Fuel Demand for Location-based Apps

by CXOtoday News Desk    Dec 13, 2013

location based apps

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, says Frost & Sullivan. However, companies still have to deal with several challenges like lack of standardization, difficulties in monetization of applications and absence of a clear business model.

Frost & Sullivan’s report ‘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,” notes 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 capitalize 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 standardization 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 monetize 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 customized 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.”