Around 40 per cent of continentals use apps featuring the tech.
Facebook is rumoured to be introducing location-based mobile ads, demonstrating the market's money-making opportunities.
And with O2's Priority Moments boasting a targeted reach of 23m UK customers, it's perhaps unsurprising that European location-based mobile service revenues are set to reach €825m in 2017.
The data from Berg Insight says revenues hit €325m last year, and will rise at a compound annual growth rate (CAGR) of 20.5 per cent across the next four years.
Comparatively, the North American location-based service (LBS) market is set to rise at a 9.2 per cent CAGR of $835m in 2012 to $1.3bn in 2017. The region leads due to a larger base of GPS smartphones on the market, which has created a higher LBS adoption.
Around 40 per cent of European mobile owners use location-based apps on a regular basis, while , while 50 per cent of Americans use the tech at least monthly.
André Malm, senior analyst, Berg Insight, said: "Smartphones is the most important enabler for LBS adoption in general. The installed base of smartphones in Europe has now reached 45 percent of total handsets and already surpassed 55 per cent in North America.
"Mobile operators still play a more central role in North America than in Europe, marketing branded services to both consumer and enterprise customers".