For last three years, the in-car navigation market has been in the decline. Now, the research firm ABI Research (News - Alert) believes that it has reached its lowest point. As a result, the latest report on this topic indicates that the overall market is reaching a revenue plateau and, thereby, creating a solid platform on which connected in-car services can bring a new generation of revenue growth.
ABI estimates that the market is predicted to reach a low of $22 billion this year before fluctuating around the $22-$24 billion mark. The market watcher sees it as a new period of growth for factory-fitted solutions, coupled with smartphone solutions. Together, these products will take in-car navigation towards saturation point in many regions by 2017, the ABI study says.
Senior analyst Patrick Connolly stated, “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.”
The ABI report shows that factory-fitted solutions will bring new revenue opportunities, especially for PND manufacturers. But the real growth opportunity will be the additional revenues that in-car connectivity will bring. Companies are fighting for a near-30 million connected car platform market in 2017; with many of the winners and losers decided over the next 2 years, according to ABI research.
Practice director Dominique Bonte added, “The opportunity is there to leverage navigation, to bring a host of new services around driver performance, infotainment, car diagnostics, and insurance.”
These findings are part of ABI Research’s GPS & GNSS Research Service which includes additional competitive analyses, vendor matrices, market data, and insights. In ABI Research’s quarterly service, “GPS&GNSS”, all forms of in-car navigation are considered, including factory fitted, aftermarket, PNDs, and smartphones.
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Edited by Rachel Ramsey