Improvement in Price-Performance to Usher in Boom Time in GPS Navigation Systems Market

PALO ALTO, Calif.--Nov. 1, 20048, 2004--Reduction in price-point of global positioning system (GPS) navigation products is expected to generate increased demand from its primary end users -- automakers and vehicle owners. The resultant revenue growth in this developing market can be further augmented through technological advances.

New analysis from Frost & Sullivan (http://www.transportation.frost.com), North American Automotive and Consumer GPS Navigation System Markets, reveals that the market was worth $545.5 million in 2003 and expects to reach $1,861.5 million in 2010 for the automotive segment. For the non-automotive segment, revenues stood at $417.8 million in 2003 and are projected to reach $891.3 million in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the North American Automotive and Consumer GPS Navigation System Markets, then send an email to Melina Gonzalez - Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

Once the prices lower, most vehicle segments -- in both the original equipment market and the aftermarket -- are likely to adopt these systems. In fact, navigation and information delivery systems could become indispensable vehicle accessories for the marine and outdoor recreation segments.

"Currently, technological innovation and higher economies of scale have already initiated steady price declines," says Frost & Sullivan Automotive Industry Analyst Veerender Kaul. "Product bundling and aggressive cost-cutting strategies in all aspects of operations including product design, sourcing, and manufacturing are expected to alleviate the price issue considerably."

Although technological innovations are progressing briskly, there are still some roadblocks such as the limited functionality and lack of industry standards. North America has been slower to adopt navigation systems than other regions because its road networks are well laid out and they retain the same name for many miles, thereby reducing the need for route guidance.

However, as dynamic navigation and other innovative location-based applications are added, navigation systems are expected to become increasingly popular.

Advances in data transmission and continuous innovation in GPS and associated technologies are expected to provide a launch pad for GPS products into automotive, marine, and outdoor recreation industries.

To ensure visibility for these path-breaking product improvements among end users, market participants are focusing on increasing customer awareness of the value proposition of GPS systems in motor vehicles and non-automotive applications.

They are also aiming to enhance the feature/performance-price ratio through simultaneous technological innovation and advances in real-time information delivery capabilities. The introduction of hard disc drive (HDD)-based navigation systems is a move in this direction.

HDD can store a preloaded map as well as a point of interest database of North America and even update it frequently. Apart from eliminating the hassle of carrying, changing, and updating discs, HDD is also cheaper on a per-megabyte basis than traditional discs.

Meanwhile, integrated infotainment systems that provide improved performances at low prices also result in superior price-performance ratio of navigation systems, thereby increasing their uptake.

North American Automotive and Consumer GPS Navigation System Markets, a part of the "North American Advanced Automotive Technologies" subscription, offers the current state of the North American automotive and consumer GPS navigation system looking at drivers and restraints for growth, pricing, distribution, technology, and demand trends. The study has been segmented into automotive, marine, and outdoor recreation navigation systems markets. It also includes competitive structure of the market, participant's market shares, and detailed profiles of key competitors. Interviews and executive summaries are available to the press.

Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information please visit www.frost.com North American Automotive and Consumer GPS Navigation System Markets F171

Keywords in this release: GPS navigation, automotive, consumer, global positioning system, North America, hard disc drive, HDD, marine, outdoor recreation navigation system, data transmissibility, dynamic navigation, research, information, market, trends, technology, service, forecast