ABI: Strong Growth Expected for Real-Time Two-Way Connected Navigation
December 29, 2007 // Published as a news service by IHS
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Real-time, two-way (RTTW) connected navigation is expected to show strong growth in the next five years, according to ABI Research.
Unlike other forms of connected navigation, which can include wired connections and one-way data receivers, RTTW connectivity opens a new dimension of service possibilities for navigation devices.
Handset-based navigation, where the navigation processing is conducted off-board (not on the handset) is one form of RTTW connected navigation that will experience "explosive growth," analysts said.
Off-board navigation will go from under half a million users worldwide at the end of 2006 to more than 70 million at the end of 2012, according to ABI Research.
More than 62% of all navigation devices will feature RTTW connectivity by 2012, with nearly 170 million units shipping worldwide.
"The connected navigation market is currently very fluid, and there is a recognition that services are more important than devices as we move toward connected electronics and software as service business models," said ABI Research director Mike Ippoliti.
"This means that connectivity (most often cellular, though possibly WiMAX [worldwide interoperability for microwave access] will become a great differentiator. But not all players have the capability to shift to an applications and services model."
One driver of this market is the falling cost of global positioning system (GPS) chipsets and their increasing use in mobile handsets, analysts said.
The merger and acquisition activity surrounding map data providers is one indication of the trend toward RTTW connected navigation. Analysts said Dash Navigation is one of the current leaders in RTTW personal navigation devices (PNDs), with a planned device launch in early 2008. Even before their device is available in the stores, they are talking about being a service provider, not a device maker, with connectivity as a differentiator.
Analysts said TomTom has also leapt into a leading position with its consumer navigation PND that includes a global system for mobile communication (GSM) radio and receives advanced real-time traffic data through that connection (but only in the Netherlands at this time).
Source: ABI Research.