According to a study by telecom research firm Pyramid Research, revenue from location-based services is expected to reach $10.3 billion in 2015 - up from $2.8 billion in 2010, Marketing Pilgrim reports.
The study adds that location-based advertising will make up approximately 60 percent of those earnings, with the primary focus on being local search applications.
"Not only are navigation applications moving to a search-funded model, but there are also a wide range of other companies looking to capitalize on the growth of local search, including start-ups (such as Poynt and Yelp), local business advertising specialists (such as Yellow Pages) and vertical aggregators (such as toptable and HotelBooker)," Pyramid stated on its website.
Additional findings point to increased GPS and smartphone adoption, success of new business models, continued growth of mobile advertising, wider coverage and higher speeds of mobile networks as catalysts for market growth.
Marketing Pilgrim points out that geo-location apps such as Foursqaure have opened the door to people-finding services, which are a hit with parents who want more effective ways to keep track of their children.