In-car navigation market continues to drop

According to a recent study by ABI Research, the total in-car navigation market has been at a continual decline for the past few years and it has reached its lowest point. Although pure navigation is unlikely to reach the high of 2008 again, the overall market is reaching a revenue plateau, creating a solid foundation on which connected in-car services can bring a new generation of revenue growth.

"When we look at the decline from 2008 to 2011, there is a perfect storm of economic conditions, low-cost/free smartphone navigation, the decline of PNDs, and falling car sales", said senior analyst Patrick Connolly. He added that the market is forecast to reach a low of $22 billion this year, before fluctuating around the $22-$24 billion mark, as a new period of growth for factory-fitted solutions, coupled with smartphone solutions, will take in-car navigation toward saturation point in many regions by 2017.