The personal navigation device (PND) market is showing signs...
Sam Wormley
November 17, 2009
The personal navigation device (PND) market is showing signs of maturity as price points
decline sharply, consolidation occurs, and shipment growth slows; and the most looming
threat is the rapidly growing GPS-enabled mobile phone market, according to a study by
analyst firm Research and Markets Ltd.
Nevertheless, PND shipment growth will continue due to affordable price points for the
mass market, automobile manufacturers' desire to offer cheap navigation options, and the
potential growth in connected PNDs. Yet, due to the weak economy and its impact on
consumer spending, demand for these higher-priced connected PNDs has yet to take off.
In-Stat expects that if the costs to incorporate a cellular modem decrease,
there will be a stronger opportunity for connected PNDs, the analysts said.
In the meantime, PND manufacturers should continue to explore ways to participate in the
GPS-enabled mobile handset market in order to sustain revenue opportunities. GPS-enabled
mobile handsets are expected to grow 26% between 2009 and 2010, and reach almost 700
million units by 2013, the report said.
"Our most recent PND research offers a comprehensive view and forecasts for both global
and regional PND shipments, worldwide revenue, and average selling prices," said Rachel
Thompson, senior manager. "Additionally, a five-year forecast of the bill of materials for
PNDs is provided along with an outlook on total silicon and non-silicon opportunity
(dollar values) through 2013. Finally, a worldwide forecast of GPS-enabled handsets is
offered. Also included are profiles of PND manufacturers and components suppliers to this
market."
Report Highlights
o Worldwide unit shipments for PNDs will reach approximately 53 million units in 2013.
o The total silicon opportunity for PNDs will reach $1 billion by the end of 2010, and
then start to decline.
o GPS-enabled mobile phone shipments will reach almost 700 million units by 2013.