The report said location-based services would be driven by the need to improve business efficiency, and by concerns over personal safety.
The report predicts that wireless vehicle tracking will generate £2bn revenue each year by 2012 as a wide range of businesses adopt the technology to monitor, schedule and route their vehicle fleets more effectively.
The tracking of people through their mobile phones is also set to increase as concerns over personal security outweigh reservations over privacy and as the controlled use of personal location information becomes more accepted.
The tracking of staff, particularly vulnerable workers, will be a strong initial driver in the business sector, but personal security applications in the private sector, such as child tracking, are also gaining acceptance.
By 2012, Juniper Research estimates that there will be more phones being tracked on a regular basis in Western Europe than vehicles, with nearly 21 million phones being tracked.