Price Points, Product Integration Fuel GPS Revenue Growth
27 April 2000
Price Points, Product Integration Fuel GPS Revenue Growth
SAN ANTONIO--April 26, 2000--With $2.07 billion in 1999 North American revenues, Global Positioning System (GPS) products are gaining acceptance among an increasing number of end users in previously untapped markets. GPS-enabled products in high-volume consumer applications such as in-vehicle navigation, recreational marine and other land markets are major drivers for this trend.According to new strategic research from Frost & Sullivan (www.frost.com), the North American Global Positioning System Market grew 21.1 percent in 1999 to $2.07 billion in revenues, while 2006 revenues are projected to increase to $4.6 billion.
Average prices for GPS products are expected to decrease 7.4 percent per year through 2006. Falling price points will increase use in non-traditional GPS applications, allowing market participants to sell a greater number of products into commercial and consumer markets.
The North American GPS market is divided into five segments, with the $1.28 billion land-based segment experiencing the most growth in 1999. This segment accounted for 61.8 percent of total revenues in 1999, a statistic not likely to change greatly through 2006.
"Land-based unit potential remains unrivaled," says Frost & Sullivan analyst Ron Stearns. Other GPS segments include the aviation, marine, military and timing markets.
"GPS companies must increasingly look to sustainable vertical markets, where growth in revenues and units best complement their organization's technical expertise and unit production potential," says Stearns. "Production runs will become increasingly shorter as advancements in computing power, reception, update and satellite fix occur at a more rapid pace."
Frost & Sullivan presents 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the North American GPS industry. The 2000 Brand Awareness Development Award is presented to Magellan, a subsidiary of Orbital Sciences Corporation (NYSE:ORB). The Manufacturing Strategy Leadership Award is given to Trimble (NASDAQ:TRMB) with Symmetricom (NASDAQ:SYMM) receiving the 2000 Merger & Acquisition Strategy Award and Garmin earning the Strategic Alliance Innovation Award.
This aerospace industry research has integrated the market engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the world test and measurement equipment markets.
Companies participating within this industry are: Ace Technology Inc.; Advanced Research Corporation; Allen Osborne Associates; Allied Signal; Ashtech Precision Products; AVEL-TECH Inc.; Canadian Marconi Company; Datum Inc.; Furuno Electric Company Ltd.; Garmin International; Leica, Incorporated; Litton Guidance and Control Systems; Magellan Corp.; Mortorola GPS Products; Orbital Sciences Corporation; Racal NCS Inc.; Raytheon Transportation Management Solutions; Rockwell Collins; Sokkia Corporation; Symmetricom; Trimble Navigation Limited; Truetime Inc. and Zyfer Inc.
Related companies include: Autometric, Inc.; Ball Aerospace & Communications Group-Telecommunications Products Division; Eastman Kodak Company; Delorme; ESRI; ETAK Inc.; Geographic Data Technology Inc.; Honeywell; Intergraph Corporation; Interstate Electronics Corporation; Lockheed Martin Mission Systems; Mapinfo Corporation; MJHarden Associates Inc.; Navtech; Qualcomm-Wireless Business Solutions; Raytheon Electronics; Spectrum Astro Inc. and Zeiss Inc.
Frost & Sullivan, which is headquartered in Mountain View, CA, is a global leader in international marketing consulting and training. Frost & Sullivan monitors the aerospace industry for market trends, market measurements and strategies. This ongoing research is used to complement the Space Systems Custom Subscription. A free executive summary of the report is available to the press.
Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to variety of national and international companies.
North American Global Positioning System Markets
Report: 7267-22 Date: May 2000 Price: $3,950