Local search and discovery apps will generate revenues of $12.2 billion annually in 2020, up from an estimated $3.4 billion in 2016, thanks to the emergence of “proximal wireless technologies” like LTE-Direct and Bluetooth, according to Juniper Research.

Along with Ultra-Wide Band (UWB) and Wi-Fi Fine Timing Measurement (FTM), these technologies will be “particularly pertinent in indoor settings”, the study said.

Juniper found that retailers are deploying Bluetooth beacons to develop proximity marketing services. Combining this with asset tracking technology allows them to develop personalised offers based on real-time stock levels.

The report expects retailers to spend $2.4 billion annually on beacons and asset tracking in 2020.

Meanwhile, Wi-Fi FTM and UWB, both expected to proliferate from 2017, will provide solutions for highly accurate positioning indoors.

“Precise positioning will be the hook for many indoor location services” noted research author Steffen Sorrell, which will “provide new opportunities for brands, where virtual store assistants or shelf-level product finding are delivered directly to the mobile screen.”

The research also found that the commercialisation of LTE-Direct will be used as a proximal discovery technology, allowing listening devices to receive offers and news or be notified of events happening locally, “dramatically widening the scope for proximity communications”.

LTE-Direct cannot track user location, which is likely to allay consumer concerns over existing location service technologies. It also has the advantage of low battery consumption.