New data from Juniper Research has found Local Search & Discovery apps will generate revenues of $12.2 billion annually in 2020, up from an estimated $3.4 billion in 2016.
The key to this growth will be the emergence of proximal wireless technologies, such as:
- LTE-Direct
- Bluetooth
- UWB (Ultra-Wide Band)
- Wi-Fi FTM (Fine Timing Measurement)
These technologies will be particularly pertinent in indoor settings, where a range of new services can be offered to the end-user.
Indoor Location Services on the Rise
The new research, Context & Location Based Services: Advertising, Retail & Emerging Technologies 2016-2020, found that retailers are rapidly deploying Bluetooth beacons in the first instance in order to develop proximity marketing services. These, combined with asset tracking technology allows retailers to develop personalised offers based on real-time stock levels.
Juniper expects retailers to spend $2.4 billion annually on beacons and asset tracking in 2020.
Meanwhile, Wi-Fi FTM and UWB, both expected to proliferate from 2017 onwards, will provide solutions for highly accurate positioning indoors. “Precise positioning will be the hook for many indoor location services” noted research author Steffen Sorrell. “For example, this will provide new opportunities for brands, where virtual store assistants or shelf-level product finding are delivered directly to the mobile screen.’
LTE-Direct To Drive Engagement
Additionally, the research found that the commercialisation of LTE-Direct will be an exciting prospect for vendors and end-users alike. As a proximal discovery technology, listening devices will be able to receive offers, news or be notified of events within the vicinity, dramatically widening the scope for proximity communications. Its inability to track users’ location and low battery consumption is likely to allay many consumer concerns over existing location service technologies.
Other key findings
Falling costs for precise positioning technology in agriculture will drive growth in the precision agriculture industry as end-users strive for more efficiency.
The industry remains wide open for data analytics services to capitalise on the opportunity presented by location data, with many companies lacking the expertise to maximise its potential.