EUROPEAN TELEMATICS & ITS: The impact of recession on the navigation market

Published by	SBD
Published	March, 2009	Product code	83356
Content info
Price	US $ 1280 Hard Copy US $ 1750 PDF By E-mail (Multi-User/Corporate Use License)

Introduction
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EUROPEAN TELEMATICS & ITS: The impact of recession on the navigation market published by SBD in March, 2009. This report price starts from US $ 1280.

Introduction

Abstract

Executive summary

Introduction

The navigation industry has seen tremendous growth in the last five years. This growth was expected to continue over the coming years, but the collapse of the global economy has brought everything to a standstill. Currently, the automotive industry is very unstable and this is having a direct effect on the navigation sector. This report analyses the recent trends within the navigation industry, how the market is likely to evolve during the recession and what vehicle manufacturers should be prepared for when the market finally starts to pick up.

Summary of conclusions

SBD expects the embedded navigation segment to be affected the most in 2009, with a decrease of over 35% in year-on-year sales. Whilst car sales are expected to decrease further in 2010, SBD believes the increasing fitment of new low-cost navigation systems on mass market vehicles will act as a buffer and prevent the embedded navigation market from declining further. The PND market has also been significantly affected by the recession, but it is still expected to grow by around 4 to 6% year-on-year for the next 3 years with sales coming mainly from low-cost entry level devices. The Smartphone navigation sector is changing rapidly with new entrants including Apple and Google. Whilst the recession has shrunk the overall mobile phone market, the proportion of GPS-enabled Smartphones is increasing and is expected to cross 35 million units by 2011. However, over 90% of these will be optimised for locationbased services only and not for in-car navigation. Overall, there is a big hype around connected services in the navigation industry at present. Whilst some of these services currently lack a profitable business model, SBD believes that they will play a key role in 2 to 3 years' time. Hence it is important that vehicle manufacturers follow the example of the Smartphone & PND industries and start investigating connected services in order to successfully meet future consumer needs.

The impact of the recession on market growth

As all the major international markets head towards recession, every industry has been affected in one way or the other. The navigation sectors (embedded, PND and Smartphones) were expected to see a steady growth over the next 5 years, but this has now been affected as consumers cut back on expenditure. SBD' s forecasts of how the navigation markets are set to evolve during the recession are shown in the next 3 pages.

1. Executive summary

1.1 Introduction
1.2 Summary of conclusions
1.3 The impact of the recession on market growth
- 1.3.1. Embedded navigation
- 1.3.2. Potable navigation devices
- 1.3.3. Smartphone navigation

2. Embedded navigation

2.1 Introduction
2.2 Effect of declining car sales
2.3 Is low-cost navigation the right solution?
- 2.3.1. Low-cost systems planned for 2009
- 2.3.2. Keeping-up with PNDs and Smartphones

3. Portable navigation devices

3.1 Background
3.2 Increase in sales but decrease in profits
3.3 The changing PND landscape
- 3.3.1. Transition from hardware to software
- 3.3.2. Connected navigation