LONDON – Technavio’s latest machine to machine (m2m) and connected devices industry report covers the present scenario and growth prospects of the global location-enabled platform market in SEA (Southeast Asia) 2016-2020.
Global location-enabled platform market in SEA to grow at an impressive CAGR of more than 37% by 2020.
In this report, Technavio’s ICT industry research experts announce their key market highlights for the location-enabled platform market in Southeast Asia. Their findings include:
Location-based advertising, location-based search and navigation, and location-based games are driving the demand of location-enabled platforms in the SEA region
The Southeast Asian region is an emerging market for location-based services and platforms. Location-enabled platforms such as location-based search (LBS) services are finding increased market penetration due to GPS-enabled devices. The growing popularity of LBS, especially among government organizations, enterprises, and consumers, coupled with deployment of high-speed broadband networks in the Southeast Asia region, presents favorable market conditions for platform providers to venture.
LBS value-chain providers require location-enabled platforms (consists of hardware and software components) to provide various LBS applications such as location-based advertising, gaming, and search and navigation. The increased adoption of location-based advertising (LBA), location-based gaming, and location-based navigation and search by enterprises and individual consumers is expected to drive the market growth until 2020.
LBS value-chain providers funded by venture capitalists predicted to invest heavily in R&D to develop innovative products and platforms
Investments in location-enabled platforms has changed the marketing investment strategy of enterprises from traditional marketing to individual user-based target marketing. These developments are backed by innovative location-enabled platforms. The growth rate as well as revenue generated by these platforms is expected to be high during the 2015-2020 period because of increased investment by large vendors and VC funding for small LBS platform providers.
Innovative LBS platforms are augmenting the profitability of many existing as well as upcoming players. Many small LBS platform providers have flourished with the development of innovative LBS platforms. For instance, Foursquare, that started as a LBS platform for searching food joints in the US, has almost 55 million users, and has been browsed approximately 7 billion times.
In a strategic move for market expansion, some innovative LBS platforms have also been acquired by big enterprises. For instance, Green Dot acquired Loopt, an LBS-based marketing platform. SK Planet acquired Shopkick, and Facebook acquired Gowalla in a bid to expand their market share.
Innovation of new LBS platforms have paved the way for many more strategic M&A of small LBS platform providers in the market. Over the next four years, the market is predicted to attract many large content or service providers to Southeast Asia, resulting in a significant increase in VC funding for local LBS platform providers.
Retail, healthcare, aviation, and tourism are major sectors that employ location-enabled platforms
LBS applications are used by enterprises across Southeast Asia in various sectors such as retail, energy, production, aviation, healthcare, hospitality, sports, and IT to increase employee productivity and workforce management.
Consumers in Southeast Asia use LBS applications for vehicular and pedestrian navigation, obtaining traffic information, mobile payment, mobile coupons, social networking, family locator, check-ins, indoor routing, mobile yellow pages, shopping guides, product tracking, car-parking guidance, weather information, and information on transportation services. Government organizations in this region use LBS for public safety and emergency applications in situations such as theft, fire, accidents, flood, and drought.
In Malaysia, Philippines, and Singapore, LBA is commonly used among retailers and malls to drive store sales. For instance, 313 Somerset, a mall in Singapore uses a beacon-based mobile advertising technique. A consumer using the Tring313 app gets a notification about ongoing sales and discount coupons when at a distance of 50 to 500 meters of distance from the mall. In Philippines, Stores Specialists, a franchiser of lifestyle brands, with the help of Sprooki, a mobile marketing services firm, started a SSI Life app for shoppers. It acts as a location-aware app for luxury brand shoppers. SSI Life app offers limited and time-based promotions to consumers as and when they approach the store.
Airports in Singapore have also started using beacon technology to deliver up-to-date and relevant information on passengers’ smartphones. Customers receive notifications through the beacon supporting application that helps them navigate the airport better as relevant information such as distance to gates, boarding times, and the closest security check lines is provided.
Thailand, Malaysia, and Indonesia have a strong youth population. LBS apps such as friend finder, location-based games, and taxi finder are very popular among the masses in these countries. Vendors in these countries are partnering with each other to increase adoption level of LBS. For instance, Morpho, an identity and security solution provider, partnered with W-Locate, an LBS provider, to implant geo-location technology in its SIM cards. With the growing popularity of LBS, the market will witness many new product launches and collaborations until 2020, and it will provide significant traction to the overall in Southeast Asia.
Browse related reports:
- Global LBS Market 2015-2019
- LBS Market in China 2015-2019
- Indoor LBS Market in Western Europe 2015-2019
- Mobile LBS Market in Southeast Asia 2015-2019
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via BusinessWire
