According to a new research report from Berg Insight, the number of mobile subscribers using a turn-by-turn navigation service or application on their handset grew 57 percent from the first half of 2009 to the same period in 2010 and reached 44 million worldwide. The subscriber base is forecasted to grow at a compound annual growth rate of 33.1 percent to reach 195 million users worldwide in 2015.

Broad availability of GPS handsets and attractive pricing are key factors for widespread adoption of mobile navigation services. In the U.S., where GPS handset penetration is above 70 percent, navigation services for mobile phones has already reached about 8 percent of the total mobile subscriber base. A large share of these users gets navigation as part of a service bundle together with a voice and data plan from their mobile operator.

“Mobile operators and service providers are now accelerating their efforts to create differentiated navigation experiences with unique local content to compete against free services,” said André Malm, senior analyst at Berg Insight. “The integration of navigation services with other applications to stimulate usage will become increasingly important for mobile operators that seek additional revenues from location-based advertising. Since relatively few subscribers need turn-by-turn guidance on a daily basis, complementary features such as social networking, restaurant and event guides improve stickiness.”