The Wi-Fi location market is split between current incumbents such as Skyhook Wireless and Mexens Technologies, the leading GPS companies such as Broadcom and CSR/SiRF, and the new threats from giants such as Google, Microsoft, Apple, Nokia, and even Facebook, said the research firm.

The recent lawsuit involving Skyhook and Google is a clear indicator of how important this space is becoming. Location is key to unlocking the potential of location-based advertising, marketing, and analytics.

With Wi-Fi location set to become ubiquitous it is a vital technology to support. This lawsuit also highlights how, despite a plethora of free solutions, there is a huge market for high-quality location technologies.

Other emerging location technologies include MEMs, barcodes, NFC/RFiD, Bluetooth, and TV. It’s not a case of either/or, but of, a continually evolving hybrid approach. GPS alone will not be sufficient to support the next generation of services and revenue streams.

According to the research firm, services such as local search, location-based advertising, geotagging, social networking and augmented reality are all significantly improved through increased accuracy and indoor/ubiquitous location.

Patrick Connolly, senior analyst at ABI Research, said: “Location-based services, revenues and advertising are the hot topics of 2010 as companies grapple to gain control of this market. The key is accurate, ubiquitous location-finding across a variety of portable devices such as mobile phones, tablets and laptops.

“ABI Research has forecast that with the proliferation of Wi-Fi and increasingly lower cost or free location engines, it will become the most widely available location technology over the next five years.”

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