European location-based revenue to hit 420m Euros by 2015

While not all of the big players in the location-based service (LBS) playing field are yet available in Europe, it would appear the continent contains plenty of opportunities with a recent report suggesting total revenues could hit €420 million by 2015.

The study, published by Swedish business intelligence firm Berg Insight, claims such revenues will rise at a compound annual growth rate of 12 percent from €220 million in 2009.

Indeed, when combined with the large social networks category, Berg believes LBS apps will enjoy the highest growth of all genres across the period.

"Location-based services are finally on the verge of mainstream acceptance," says Berg senior analyst André Malm.

"Increasing sales of smartphones are driving end-user awareness of mobile Internet services and applications in general. More and more developers are now adding location support in their applications to enhance the user experience."

Malm's view is certainly backed up by the recent movements made by some of the leading LBS apps

Foursquare, which currently boasts a userbase of more than 1.5 million, has linked up with Microsoft and Bing Maps, as well as expanding its own app gallery to promote the scores of titles that have incorporated its software.

US rival MyTown - with 2.5 million users - has recently signed a similar deal with Google, and claims it plans to expand overseas in the near future – with Europe the main target.

"The installed base of GPS handsets in Europe has recently surpassed 15 percent of total handsets," adds Malm, "and will increase to 50 percent three years from now."

Berg Insight believes it's the fact such apps are free – mainly funded by advertising – that make them such a good fit for consumers.

[source: Berg Insight]