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IDC: PNDs Will Nearly Double in 2007 as Consumer Navigation Market, GPS Tech Turn a Corner

September 13, 2007 // Published as a news service by IHS

 
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Portable navigation devices (PNDs) remain the most popular segment of the consumer navigation device market, representing 62% of the total worldwide market and nearly doubling in size with 93% growth over that of last year, according to a study by IDC.

IDC, which expects the consumer navigation market to grow by 53% worldwide in 2007, attributes the growth in demand to public awareness, lower entry price points, more sophisticated features and additional channels of distribution.

The largest regional market represented in the IDC forecast is Western Europe, where the PND segment has been historically strong, followed by the U.S.

However, IDC also expects increased demand for PNDs in Asia/Pacific, where China already owns a global positioning system (GPS) satellite network.

IDC said the 2008 Olympic Games in Beijing will spark PND popularity in China as the world navigates to the games.

According to the IDC study, PNDs are not the only segment of the consumer navigation market that will experience sizable growth and additional revenue opportunities.

Consumer interest in outdoor activities and fitness will likely contribute to growth for outdoor and fitness-focused GPS devices as well as marine products, which IDC said are expected to represent $1.2 billion in revenues collectively by 2011.

While in-vehicle navigation devices are growing at a slower pace than PND, IDC said this segment will remain strong in many markets around the world as long as technology providers work more closely with auto manufacturers to introduce lower-cost tools into future new model year designs. According to IDC, as in-vehicle navigation interest grows, it will increasingly compete with the aftermarket PND category.

"It's clear that services will become an increasingly important part of the navigation picture going forward as these devices compete with other consumer devices such as mobile phones," said Diana Hwang, research manager, Mobility.

"IDC expects overall consumer navigation device growth to remain strong as GPS technology and additional services become integrated into a variety of product offerings affecting the way consumers live, play and interact in the future," Hwang said.

For more information about the IDC study, titled Consumer Navigation Devices: Finding Your Way (doc No. 208061), go to http://www.idc.com.

Source: IDC.

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