ABI: GPS-Enabled Handset Market Revenues to Top $100B in 2012
December 11, 2007 // Published as a news service by IHS
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Shipments of global positioning system (GPS)-enabled mobile phones will generate more than $50 billion in revenues in 2008, according to ABI Research, rising to $100 billion in 2012.
The market for these handsets is expected to grow from approximately 240 million units in 2008 to more than 550 million handset shipments in 2012.
Most of today's GPS-enabled handsets are code division multiple access (CDMA) devices, but analysts said increasing numbers of GPS-enabled handsets for third generation (3G)/wideband CDMA (W-CDMA) networks will start to appear in the market from 2008 onward.
"The ongoing consolidation in the mobile industry - including Nokia's acquisition of Navteq, Broadcom's acquisition of Global Locate, Cambridge Silicon Radio's (CSR's) acquisition of NordNav Technologies and Cambridge Positioning Systems, and the tussle between TomTom and Garmin to acquire Tele Atlas - gives a clear indication of the plans and commitment of industry players to address the GPS-enabled handset market," said ABI Research industry analyst Shailendra Pandey.
Analysts said the mobile industry has reached the stage where rapid growth in the GPS-enabled handset market will be evident.
From cost and technology perspectives, chipset manufacturers now have solutions in place that will allow the integration of GPS in handsets at low cost and provide significant improvements in terms of accuracy, time-to-first-fix, and reception in indoor environments.
On the services side, analysts said mobile operators and navigation application developers are coming up with attractive location-based services (LBS) offerings. Also, handset vendors are showing greater interest not only in providing GPS-enabled handsets, but also in introducing their own GPS-centric applications and services.
The market for GPS-enabled handsets should grow strongly in the next five years, analysts said. In addition to major handset manufacturers, such as Nokia, Motorola, Research in Motion (RIM) and Samsung, smaller Asian original design manufacturers (ODMs), including High Tech Computer (HTC), Quanta and Inventec, are also introducing GPS-enabled devices.
Source: ABI Research.