Location-Based Services (LBS) is estimated to reach € 420 million by 2015 from € 220 million in 2009, says a new research from Berg Insight. The industry will grow at a CAGR of 12%.

Applications related to Location search, navigation and social networking are estimated to be among the top most popular services in terms of users.

“Location-based services are finally on the verge of mainstream acceptance. Increasing sales of smartphones are driving end-user awareness of mobile Internet services and applications in general. On-device application stores enable access to mobile services for a broader audience at the same time as flat-rate data plans make pricing more transparent. More and more developers are now adding location support in their applications to enhance the user experience”, said André Malm, Senior Analyst, Berg Insight. He adds that integration of GPS in handsets is an important driver. “The installed base of GPS handsets in Europe has recently surpassed 15 percent of total handsets and will increase to 50 percent three years from now.”

The research highlights that revenue generation for LBS in Europe is increasingly shifting from premium fees to ad-funding mode.