Momentum shifting in the GPS device market

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6 August 2008 News

Information from Databeans

The market for GPS devices is showing signs of renewed momentum. GPS companies are making themselves increasingly visible; for example, the world’s two largest GPS manufacturers, Garmin and TomTom, have both placed advertisements on prime time television in the United States.

In recent news, Apple has announced the release of the next generation iPhone, which will come equipped with GPS technology.

As mobile phone manufacturers try to keep pace with one another, this announcement may have a strong impact on GPS usage within handsets. Along with phones, GPS technology finds its other main applications in portable navigation devices and vehicles. All things considered, Databeans expects revenue for GPS chipsets to grow at an average annual growth rate of 11%, reaching nearly $1,3 billion in 2013; this compares to the current market estimate of $729 million.

With the large number of current mobile phone users and the relatively low penetration rate of GPS into phones, the handset market should drive GPS growth. In addition to the iPhone, the major handset players, Nokia, Motorola and Samsung, all offer phones utilising the technology. Garmin, the world's largest GPS manufacturer, has also entered the handset space, set to release its nüvifone in the third quarter of this year. In general, as consumers replace their previous phones with new models, their demand for increased functionality should lead to strong sales for GPS technology into handsets.

The other strong growing GPS application is in the automotive market. GPS features are currently found as standard in some vehicles, and optional in many others. In addition to factory installed systems there are also a variety of aftermarket GPS devices available which are generally cheaper and have the additional benefit of portability. Although cost has previously been prohibitive, falling chipset prices should lead more and more consumers to utilise GPS technology in their vehicles.

For more information visit www.databeans.net

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