Strategy Analytics predicts $10bn boom in location services by 2016

Company thinks search advertising will account for more than half of those revenues.

The location based services market could be worth nearly $10 billion in 2016 according to a new report from Strategy Analytics.

That's a combination of consumer and advertiser spending, with search advertising forecast to account for just over half of those revenues according to the report.

"Mobile users are increasingly demanding search, map and navigation services, for which location information is either fundamental or provides greater context, utility and appeal," says senior analyst Nitesh Patel. "For advertisers, location data provides opportunities for targeting and optimizing ads."

Strategy Analytics thinks that location providers will have to up their game when it comes to transparency around privacy policies, the report implies that current concerns around location data will not impede the sector's growth.

Who will benefit most? "Although a slew of companies, such as Telmap, TeleNav, Yellow Pages, Aloqua, and WHERE, among others, are positioning services to monetize the location-enabled search opportunity smaller less-recognized players will struggle to gain advertiser mind share against internet search giants Google and Microsoft," says SA's David MacQueen (pictured).