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Personal navigation market continues to flourish: iSuppli

Posted: 27 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:personal navigation market? market forecast? GPS navigation devices?

The market for GPS-based navigation devices, specifically the personal navigation device (PND) segment, will be up for strong growthreaching $16.5 billion in 2013, forecasts iSuppli Corp.

iSuppli reported that revenues from PNDs will grow four-fold between 2006 and 2013, despite rapid price cuts by vendors due to competition and ASPs plummeting down 23 percent y-o-y in 2006. The market firm estimates 40 companies now are offering GPS navigation capabilities on a range of products from PNDs and embedded systems, to smart phones.

PND market forecast by iSuppli
Click image to view figure.

Navigating new options
According to iSuppli, the navigation market used to be clearly segmented into two product families: embedded systems and PNDs. The more costly embedded systems offer the benefits of integration with improved positional accuracy on a large dash-mounted display. PNDs offer most of the important navigation features on a device priced for the consumer mass market.

"The general interest in GPS solutions has created a third entrant in the market: the smart phone," said Richard Robinson, principal analyst for automotive electronics at iSuppli. "Smart phones have the capability to offer wireless Internet connectivity as well as improved positional accuracy in difficult geographic locations using Assisted-GPS (A-GPS)."

Shipments of GPS-enabled mobile handsets are expected to reach 250 million units by 2010, up from over 70 million units in 2006, according to iSuppli. While this represents a strong growth opportunity for GPS silicon providers, if even a fraction of this market takes navigation as an option, it would also present a significant revenue opportunity for the rest of the navigation value chain, from map-supply and memory to location-based services (LBS). In the United States for example, a market driver being eyed is the requirement for Enhanced 911 (E911), a feature that automatically associates a physical address to a mobile number.

Other market drivers will include the growth in location-based services and mapping applications for mobile devices from a range of third-party suppliers and Internet search companies such as Yahoo and Google.




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