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GPS obsessed

24 March 2017

10 geospatial industry trends to watch in 2010

2009 was definitely the year that the geospatial industry took off from a mainstream consumer perspective. Sure location-based applications and services have been around for years, but not for the average Joe/Jane like you and I. This year will be the first year that I actually put together a prediction post, my thoughts regarding what will trend in the industry in 2010. It’s part of my goal to focus on content quality this year which I’ll talk about in a future post. So here goes. These are a few of the areas I think will be important to watch in 2010 and I hope you add your thoughts and opinions in the comments after the post.

1. Augmented reality explodes–and by explodes I’m not referring to the marker-based applications and browsers on the market now. While some industry insiders like to badmouth the augmented reality stuff available now, every successful industry needs to start somewhere. I think 2010 will bring a proliferation of location-based augmented reality apps running the gamut from marketing/advertising to social networking, and even filtering back up to military uses.

2. Game mechanics proliferate–right now Foursquare and Gowalla are the two biggest GPS-using mobile applications that have successfully incorporated game mechanics. Both have been quite successful acquiring users that use the respective apps repeatedly, though neither have the user base (and probably never will) that Facebook and Twitter have. I think we’ll see something from Twitter in this area in 2010 with the launch of its Geolocation API though I think it’ll be in the form of an acquisition (like its recent GeoAPI buy). Once Facebook incorporates location into its platform (which I think will be in 2010), I think we’ll see some interesting uses of game mechanics here as well.

3. Virtual goods and mobile coupons will be huge–I’ve talked about virtual goods before as a fitting business model for location-based applications. Geographical locations, especially those with some sort of historical significance, lend themselves to having a monetizable virtual good attached. Plus the next-to-nothing cost of a virtual good isn’t threatening to the average consumer, even young ones. Eventually though, and I think 2010 will be the year, mobile coupons will a massive industry. Especially once they can be tied to location–not only outdoor location, but in-store location as well. This year I was impressed with the “mobile deal” app usage by people looking for holiday buying deals. Next year the mobile deal apps will be much more complex, contextualized with geolocation, and even more popular!

4. Google–need I say more. Google’s movement in the geospatial industry in the past year has been something like a rocket taking off into space. It seemed like every week the company had a new geo-announcement pertaining to its Maps and Earth platforms, for both end users and developers. With innovations like Google SketchUp making it so easy to create 3D building models, the Google Earth platform will move increasingly toward a 3D interface in 2010 and count on many more information layers becoming available. Possibly most significantly, Google Maps Navigation, free and open source GPS navigation software that is only available legally in the United States will become globally (or at least moving in that direction) available. What that means for Garmin, TomTom, Magellan, Mio and other dedicated PND and GPS handheld manufacturers remains to be seen. Free GPS software that can be used by Garmin and others will also have a direct effect on the viability of companies such as NAVTEQ and Tele Atlas. Right now, on a global scale, both companies have better overall mapping data than Google. But remember that Google cut Tele Atlas as its mapping data supplier in the US recently and that trend will continue.

5. Android LBS apps surpass iPhone LBS apps–okay, maybe not in quantity. Right now the iPhone app platform is the place to be, but with the sheer amount of apps in the App Store it’s becoming tougher for developers to stand out. That goes for LBS apps as well as other types. In 2010 though, we’ll see a ton of Android phones hit the market and they’ll be better than the Droid (imagine that). With more Android phones available, and more Android APIs to work with for developers, I think we’ll see many LBS developers creating innovative applications for the Android Market. I don’t really consider the Blackberry App World, Palm App Catalog, and Nokia Ovi Store as major players at the moment.

6. Search engine results incorporating location–you could argue that there is already Google Local Search and other search engine niches that return search results that are local to the person searching. But I think that geolocation in real-time will play a part in search results, not only on the mobile phone but on the desktop as well. Google and Microsoft already incorporate real-time Twitter results in their search results. Indirectly that means Tweets appended with location information appear in search results almost immediately. Eventually location, whether it be indirectly or directly through mobile search, etc., will play a huge part in search engine results. Especially as search algorithms move to real-time rankings. Look for movement here in 2010.

7. Venture capital cash flowing again–in the first half of 2009, venture capital investments were fairly slow given the recessionary economic environment. In the second half of the year though, investments picked up, and quite a few were in the LBS industry. I think VC cash will flow in 2010 into the LBS industry with a focus on monetization platforms (mobile advertising, etc.) and back-end infrastructure (think SCVNGR–it’s a company that has my antennae pointing skyward). The first half of 2010 will probably include quite a few VC investments into consumer application-focused companies as well. I don’t really expect anything in the way of IPOs, though I’ve heard rumors that Loopt may be heading in the is directions. In terms of acquisition behaviour, look for Google and Twitter to gobble up quite a few smaller LBS companies. Facebook may acquire a few LBS companies of its own as I expect its engineers are working on the geolocation aspect of the social networking platform behind the scenes.

8. Location-based mobile video–the ubiquity of GPS-aware mobile phones and even digital cameras has made geotagging photos easy. Just browse through Flickr and Picasa and you’ll seee millions of personal pictures with latitude and longitude coordinates attached. I think 2010 will be the year of location-based mobile video. Mobile video platforms like Qik are incredibly useful and growing quickly in popularity as more and more people have smartphones with generous data plans. 2010 will bring new mobile video platforms that focus on contextualizing videos with location information. Whether this will be from established platforms or from new names I’m not entirely sure. Microsoft Research has a project called Mobicast which stitches mobile video from multiple mobile phones together, kind of like Photosynth does for pictures. In the future Mobicast may be able to figure out how to stitch together multiple video streams from a single location into a single stream using GPS metadata. This is the future of mobile video and we’ll see it begin this year.

9. Every gadget to include a GPS chip–I admit this might not happen in 2010, but things will move in this direction. Dedicated PNDs used to be the sole domain of the GPS chip, but in the next few years every mobile phone will have one, not just smartphones. In 2009 digital camera and netbook makers began to incorporate GPS chips into their respective gadgets, albeit only occasionally. In 2010 I think most netbooks will have GPS chips and they make great little navigation gadgets with apps like Google Maps. In fact, Google’s own Chrome OS-based netbook will supposedly include a GPS chip and one-click Google Maps access. From a cost perspective, the addition of a GPS chip isn’t much to a company with good distribution, but has a high value for the end user. Most digital cameras and possibly video cameras this year will also include an embedded GPS chip. Geotagging pictures is popular among the average electronics user now and this trend will extend to video I’m assuming. Next will come the incorporation of GPS into every gadget imaginable. Just imagine the Amazon Kindle  10 geospatial industry trends to watch in 2010with a GPS chip. Can’t find an ebook? Just launch Google Maps and access an application that routes you to the nearest bookstore stocking your book!

10. PND prices continue to plummet–now that pretty well every GPS manufacturer pumps out hardware and software with the same features, with different names, they can only compete on price. That drives price down and that’s why it isn’t uncommon to net a decent GPS navigator online for south of $100. Even in the middle of summer. This year it won’t be uncommon to net a Garmin or TomTom GPS, an entry-level one, for $50. ‘Nuff said.

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