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Study forecasts PND market to decline

Posted: 19 Apr 2011 ?? ?Print Version ?Bookmark and Share

Keywords:PND? market? navigation? telematics? forecast?

The Personal Navigation Device (PND) market is forecast to further decline in the coming years unless PND OEMs make radical changes.

ABI Research described the grim future of PND based on its latest study called "Personal Navigation Devices: Making Money from a Declining Market."

"Over-inflated shipments generated by 'price wars' have created a false impression of market strength. This also delayed the inevitable consequences of a slowdown in innovation. In the meantime, the in-car telematics market has finally gotten organized, and the cellular navigation and telematics market goes from strength to strength, forecasting it to reach over 500 million subscribers/downloads in 2016," said Patrick Connolly, senior analyst of ABI Research.

PND OEMs face tough decisions on whether to continue with the status quo or try and create a sustainable market at a more realistic level. However, many PND OEMs have either exited the market completely or consolidated. Others are already developing products for new growing markets, such as in-car, recreational and fitness, tablets, and mobile applications.

"The connected PND market is forecast to represent almost 40 percent of all shipments by 2016. Yet, there is not enough time to allow this market to evolve organically, while 'nickel and diming' customers with high subscription fees. The existing business model must be overhauled, removing cost barriers for customers, boosting hardware platforms and opening up the OS to encourage application developers. Such measures might just accelerate uptake enough to save the overall market," Connolly observed.

"Adopting this new approach will not only help to sustain the market, but will also open up secondary revenue sources such as data analytics, applications, traffic, and advertising; these are areas that remain under the radar but are set to generate an increasingly large proportion of overall revenue," said Dominique Bonte, senior practice director of ABI Research.





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