Berg Insight Sees Future of Mobile Maps

location based services
portable navigation devices

Posted by John Kullman

Berg Insight, a company that provides analytical services and business intelligence to the telecom industry, predicts growth in mobile navigation services. These services are to be driven by GPS-technology in smartphone handsets and the bundling of navigation and map content with mobile devices and service plans. Revenue from subscriptions and advertisement is expected to grow at nearly 40% over the next ten years.

The number of mobile subscribers accessing maps and downloading routs using their mobile handsets in Europe and the U.S.A. is around 4 million. Over the next ten years the number of map subscribers is expected to increase at a compound annual growth rate of 61% to reach 43 million users in 2012.

Big names in the mobile industry are gearing up for mobile phone navigation. Nokia launched its GPS-enabled N95 for the European market this year. The U.S. has evolved further with GPS being a standard in all CDMA-handsets. Sprint Nextel and Verizon Wireless have attracted millions of subscribers to navigation services. Google and Yahoo! are extending their existing search and map propositions with Mobile Web 2.0 applications.

Andre Malm, telecom analyst, Berg Insight says, “Record shipments of PND devices in Europe and the US have introduced the benefits of GPS for motorists. Now the major players in the mobile industry are in hot pursuit of delivering the same experience for pedestrians, commuters and travelers on the handset display.”

Berg Insight predicts that ad-funded services will account for an increasing share of the mobile navigation market. Local search applications can open the door to new ways for businesses to target consumers. MobileCrunch reported last month that more Americans are taking their mobile devices along on vacation to access map technology. See: Unexpected Surge in Google Mobile this Summer. Advertisements for restaurants or other attractions could be sent to users who access a local map area.

Having access to GPS service or other map applications is appealing. If you ever get lost or need the quickest rout somewhere while on foot, you can find your way with the press of a few keys.

Berg Insight