Hybrid location provider Skyhook Wireless’ news that it is powering location-based social networking service Gowalla had fortuitous timing today. Concurrent with the announcement, Juniper Research put out a report suggesting that mobile location-based services (LBS) will exceed $12 billion by 2014, driven in part by Skyhook’s specialty, hybrid location.
In addition to hybrid location, Juniper Research said that smartphone proliferation and a surge in app storefront launches is driving the revenue growth in LBS. From the time between 2000 and 2007, improvements in handset user interfaces, easier access to app distribution channels, increases in mobile Internet usage and deployment of high capacity network infrastructure have also attributed to carrier’s interest in the space and the opportunity for browser-based LBS. Advertising will help drive the $12 billion+ expected revenues, Juniper said, but privacy and information security could continue to hinder the market.
LBS spans a number of apps and services on mobile, but location-enabled social networking apps have been among the most popular. Foursquare competitor Gowalla is adding Skyhook’s Core Engine to its Android application, meaning that the platform can find a more accurate location based on the phone GPS, cell tower positioning and assisted GPS. Gowalla CEO Josh Williams said in the release that he had been disappointed with Android’s location capabilities. The company has always tailored the Gowalla app to the iPhone, which uses Skyhook by default and provides a more accurate location, he said.
Skyhook also provides a publicly available SDK for Android developers. The Gowalla Skyhook-enabled app is available in Beta on Android and will be publicly released next month.
(Video courtesy of gigaom.com.)