The use of this tech is estimated to grow from $1.57 billion, this year, to a tremendous $11.25 billion in 2019.
A recent report focused on the use of services that are based on geolocation technology has shown that the Asia pacific market is going to experience a massive amount of growth in this area.
The report was called the “Asia Pacific Location Based Services (LBS) market report” by MicroMarket Monitor.
The market for geolocation technology based services within the Asia Pacific region is going to experience a CAGR of 48.2 percent, said the report, which predicted a total this year of $1.57 billion, this year, but $11.25 billion in five years from now. This includes a full range of different types of services, including the mobile marketing techniques that are rapidly rising in popularity as it provides firms the opportunity to reach consumers at exactly the moments in which consumers are near a store, or even near a specific product within a store making ads relevant and hyper local.
That said, geolocation technology use goes a lot further than mobile marketing all on its own.
The range of different uses that were included in within this report included navigation and travel, geo-social networking, real estate and retail searches, as well as location based marketing and advertising. As the number of smartphone users rises, these technologies that are typically compatible with the standard mobile device are being used by an even increasing range of applications.
The Asia Pacific region is, in fact, the area in which location based services are experiencing the highest growth in the world. Moreover, it also holds a 19.1 percent share of the entire global market for this tech, this year. This is, in part, because the governments of many of the countries in that region, including Japan and China, are greatly dependent on location based services in order to make supply chain management easier.
Moreover, as geolocation technology continues to advance and evolve, private organizations within this region have also been stepping into this area in order to help themselves with such issues as operational efficiency. It is expected that in five years from now, this region will hold a share of 27.8 percent of the global market, said the report.
Mobile commerce becomes a major focus of Asian retailers
Mobile commerce is gaining steam in the Asian Pacific market. The proliferation of smart phones, tablets, and wireless Internet is allowing consumers to move away from their PCs and traditional stores to participate in a new trend that has been emerging in industries all over the world. Euromonitor International, a leading market research and analysis firm, suggests that the growing adoption of mobile technology in the Asia-Pacific region is spurring retailers to delve more seriously into the field of mobile commerce.
Retailers adopting mobile commerce more quickly than those in the West
Retailers in the Asia-Pacific market have been provoked to aggressive action on the matter and have been adopting mobile commerce much more rapidly than those in other markets. Many of these retailers have begun developing mobile applications that allow consumers to shop more effectively from their smart phones and tablets. Euromonitor International expects that the aggressive adoption of mobile commerce among Asian retailers will only continue to pick up momentum in the coming months.
PayPal Singapore anticipates major growth in coming years
This analysis corresponds with that coming from PayPal Asia-Pacific, which suggests that consumers are becoming more apt to use their mobile devices to pay for products. Moreover, these consumers are more likely to spend large sums of money than those that do not participate in mobile commerce. According to PayPal, mobile payments in Singapore came in at $34 million in 2010 and more than $259 million in 2011. PayPal anticipates mobile commerce in Singapore alone will reach $2.4 billion by the end of 2015.
Groupon model proves popular with retailers
Mobile commerce has opened new possibilities for consumers throughout Asia. One of the business models that has become very popular with retailers embracing mobile commerce is allowing consumers to purchase products online and claim their purchase in person or have it otherwise mailed to them. This model was pioneered by Groupon Singapore, which is now being adopted by numerous retailers throughout the market due to its convenience.
