ABI Research Asks: How Long Can The PNAV Boom Be Sustained?

OYSTER BAY, N.Y.--Jan. 1, 20069, 2006--Unprecedented growth in the European PNAV (personal navigation) market has the more successful vendors witnessing year-over-year growth in excess of 600%. With some vendors even reporting initial supply constraints, ABI Research questions just how long this growth will continue.

"We believe the market explosion Europe currently faces has been caused by three main factors," says Dan Benjamin, principal analyst with ABI Research's transportation research practice. "First, the cost of these devices have come down dramatically. Second, several vendors have been fully able to leverage the marketing and distribution channels available to them. Finally, the added feature of traffic awareness for dynamic navigation in many PNAV models has made the offerings even more compelling."

However, ABI Research warns that leading European aftermarket PNAV vendors such as TomTom, Navigon, and Mitac must not rest on their laurels. Benjamin advises that "Despite distribution deals with automakers to offer PNAV models on some new car models, vehicle manufacturers will not sit idly by for long and allow PNAV devices to usurp the sales of factory-installed navigation systems." Additionally, the influx of "me too" PNAV devices currently flooding the market only proves that market leaders must continue to increase the functionality of their devices in order to maintain their lead.

These issues -- and others such as the potential effect of growing mobile video offerings in the cellular and online download markets, and how they might affect the in-vehicle video market -- are addressed in ABI Research's newest update to its Automotive Infotainment Research Service. This subscription service addresses several key topics affecting the automotive OEM and aftermarket, such as the latest consumer electronics trends, developing global entertainment and information delivery technologies and applications, and infotainment and digital rights management integration.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in transportion, wireless semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call +1.516.624.2500.