Reduction in the Cost of Automotive Navigation Systems is Expected to Propel Demand in the North American Automotive Navigation Systems Markets
DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c67719) announces the addition of new Frost & Sullivan report "Analysis of the North American Automotive Navigation Systems Market" to their offering.
Navigation systems are a fairly recent phenomenon to the automotive market, although they have conceptually been around for a few decades. While the North American automotive navigation systems market is in its early growth stage, exponential growth is expected in the future. Navigation services – the provision of traffic information – are gradually gaining momentum, thereby offering the potential to achieve revenue gains.
"Strong growth in the North American automotive navigation systems market is primarily due to a reduction in the cost of navigation systems, aggressive marketing strategies adopted by automakers, and increasing consumer awareness," notes the analyst of this research service. "The market is also driven by customers' need for real-time information."
Automakers Are Using Navigation Systems as Vehicle Differentiators
With the decline in the cost of original equipment and aftermarket navigation systems, the market is experiencing an increased adoption of these systems. Of the 270 light vehicle models sold in North America in 2006, only about 60 percent offered navigation as an option. However, this percentage is expected to rise significantly over the forecast period. Automakers in North America are increasingly using navigation systems as vehicle differentiators to influence the purchase decisions of consumers. Systems have become more advanced, with a number of capabilities that their earlier brethren lacked. Some present-day systems have hard disc drives to store maps and can integrate with data from services such as XM for weather and traffic information. Some systems can also sync with Bluetooth-enabled handsets to retrieve data from the Internet, updating maps in real time.
Although a constant decline in navigation hardware and content prices will act as a restraint for market revenues in a direct "all other things being the same" way, it is a major demand driver, which will enable the navigation market to grow. Given the continued fall in prices, more auto manufacturers are likely to offer navigation systems as standard equipment. "Moreover, as volume grows and technologies advance, greater integration of products will reduce manufacturing costs," explains the analyst. "Such savings are likely to be passed on to customers." Besides, in the services market, monthly, yearly, and lifetime subscription fees are expected to decrease nominally as a result of economies of scale as subscriber bases grow. In addition, demand for real-time traffic information is increasing, and it is estimated that 79 percent of consumers will be willing to pay for real-time traffic information services.
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Navigation hardware
- Navigation content
- Navigation services
Technologies
The following technologies are covered in this research:
- Hybrid navigation
- Offboard navigation
- Onboard navigation
- PND Device integration
- MOST technology
- HMI technologies
- Advanced driver assistance systems
- 3D imagery
Content Outline:
1. Executive Summary
2. Total Automotive Navigation Systems Market
3. Navigation Hardware Market
4. Navigation Content Market
5. Navigation Services Market
6. Appendix
7. Decision Support Database
List of Figures
This Frost & Sullivan research service titled Analysis of North American Automotive Navigation System Markets provides a detailed analysis of these markets and includes a description of the key drivers and restraints affecting them. The study also includes unit shipment and revenue forecasts, and an overview of product types, the distribution flow, competitive analysis, as well as technology and market trends. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: navigation hardware, navigation content (map databases), and navigation services (provision of real-time traffic information).
For more information visit http://www.researchandmarkets.com/reports/c67719