Online, Automotive LBS Gain Traction In China; Mobile LBS Lags

location based services

Scottsdale, AZ - Online and automotive Location-Based Services (LBS) are catching on in China, while mobile LBS is having difficulty gaining traction, according to In-Stat. Recently, map data providers have been able to offer better digital maps with enlarged coverage and richer point of interests, the high-tech market research firm says. LBS are available from more companies, and have improved user experience, richness of applications, and usefulness of service, and as a result, have stimulated demand.
“On the other hand, mobile LBS has not gained traction in the consumer market because Chinese wireless subscribers’ awareness of mobile LBS is very low, and there is a lack of attractive location-based services,” says Raymond Yan, In-Stat analyst. “Compared with other value-added data services, mobile LBS requires high rates of investment, but generates smaller returns for service providers.”
Recent research by In-Stat found the following:
Online LBS revenue will hit US$70.5 million in 2010, up from US$2.2 million in 2005.
Total revenue for the automotive GPS devices market will increase to US$760.0 million by 2010, up from US$206.2 million in 2005.
The penetration rate of GPS devices among Chinese car drivers is currently less than 1%.
Recent In-Stat research, In-Depth Analysis: Location-Based Services in China (#IN0603363CWW), covers the online LBS, mobile LBS, and automotive LBS markets in China. As electronic maps are the basis of these three categories, the research first looks at China’s mapping and surveying industry, including digital map vendors and their offerings. It then provides in-depth analysis of the online LBS, mobile LBS, and automotive LBS markets in China, including the value chain, available services, and market drivers and barriers. It also includes five-year forecasts (2005-2010) for online LBS market revenue, mobile LBS market revenue, and automotive LBS terminal shipments and revenue.