'Off-deck' applications are promoting a surge of growth in location-based services, according to a new report by ABI Research.

And yes, if you wondered what off-deck means, we felt the need to check it out ourselves, just to be sure.

It simply means applications that are supported by a remote server, rather than being installed locally on a mobile device. ABI says the main drivers behind this off-deck LBS growth are the sudden rise in popularity of a new generation of touch-screen GPS-enabled smartphones, and a wide range of application stores launched by handset and mobile operating system vendors.

In the world of LBS, and specifically satnav, ABI says the 'traditional' leaders include Telenav and Networks in Motion, but adds that the expansion in 'apps' has opened the market to smaller developers.

 

However, it also warns that the nascent off-deck LBS environment is already threatened by looming fragmentation both within and between platforms, and by increasing uncertainty surrounding viable business models.

It says the emergence of 'freemium' and ad-funded approaches already demonstrates suppliers' awareness of end users' limited willingness to pay, and adds that Google's recent announcement of free turn-by-turn navigation on Android phones 'has cast further doubt on the prospects for monetising off-deck LBS.'

The coming year could be one of uncertainty and change in the LBS market.