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September 2024
The automotive navigation system market was valued at USD 35.28 billion in 2022, and it is expected to reach USD 53.12 billion by 2032, registering a CAGR of 4.08% during the forecast period.
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The COVID-19 pandemic has had a detrimental impact on businesses, including the automotive industry. With low car sales in 2020, the market potential for navigation systems has been minimal. Additionally, the aftermarket segment of the market has seen limited sales due to the scarcity or near absence of cars. However, as demand for passenger vehicle sales increases and awareness of vehicle safety grows, the market eagerly anticipates a rebound to pre-COVID-19 conditions. The pandemic has caused uncertainty in the vehicle GPS navigation system market, with major products experiencing slowdowns, decreased business confidence, and heightened customer apprehension. Local government mandates such as widespread lockdowns and temporary suspensions have further affected production and sales of car GPS navigation systems.
A vehicle's Global Positioning System (GPS) navigation system integrates audio/video GPS receivers that receive signals from satellites to track and position the vehicle. These systems utilize GPS to determine the vehicle's current location and provide quick traffic information to suggest the best routes, along with points of interest like banks, gas stations, hospitals, and restaurants. They are designed to offer driver alerts and deliver audio or visual commands to the driver. Automotive GPS navigation systems can be factory-installed or purchased as optional equipment by customers. Factors such as increasing demand for safer vehicles, greater guidance, reliable real-time traffic information, rapid traffic connectivity development, and the rise of car sharing and public transport, particularly in developing countries, are driving the growth of the automotive GPS navigation system market.
In the medium term, features like real-time traffic information, map updates, and smartphone integration will continue to attract consumers' attention. Technological advancements in navigation systems are expected to further drive demand in the industry during the forecast period. However, concerns about cybersecurity and the high cost of navigation systems may hinder market growth. For instance, Amazon has introduced new vehicle features to its Alexa voice assistant, including the ability to pay for gas by voice command, available at over 11,000 Exxon and Mobil gas stations with compatible machines.
The Asia-Pacific region is projected to emerge as the primary market for car navigation systems, with Japan, India, and China expected to lead in manufacturing during the forecast period. Demand is also anticipated to increase in North America and Europe due to the proliferation of automotive MEMS sensors, with emerging applications such as commercial automotive navigation systems used in electronic controls for traffic and tire pressure monitoring systems.
In addition to navigation systems being factory-installed by OEMs, the installation costs in the aftermarket channel are also expected to rise during the forecast period.
As e-commerce continues to evolve, navigation technology plays an increasingly important role in ensuring timely delivery of products to customers. Many e-commerce companies are partnering with existing service providers for business-to-consumer (B2C) shipments. To meet these demands, logistics companies are expanding their services by adding more vehicles.
There is a growing need for safety and navigation systems like Advanced Driver Assistance Systems (ADAS), Lane Departure Warning Systems (LDWS), and GPS navigation systems to enhance road safety and comfort. Some entrepreneurs have developed new features and advanced software to offer better and more accurate services. For instance, in January 2021, Alps Alpine and Qualcomm announced "ViewPose," a new positioning technology aimed at addressing the limitations of traditional GPS, particularly in cities with unstable signals.
These vehicles are typically equipped with satellite navigation systems to ensure timely deliveries. Additionally, e-commerce companies have introduced terms like "delivery anywhere," "same-day delivery," and even "same-time delivery" to attract more customers.
However, market growth faces challenges such as security, information, and privacy concerns due to the proliferation of dashboard navigation systems, lack of communication infrastructure in new regions, and high shipping costs. Conversely, the increasing need for fleet management, the popularity of electric and hybrid vehicles, and technological advancements are expected to drive growth during the forecast period.
Most cars produced today come equipped with navigation systems that help drivers reach their destinations while entertaining passengers. Older vehicles without factory-installed navigation systems may have aftermarket navigation on the dashboard or use portable navigation systems.
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The European automotive industry has emerged as a major global supplier of cars and recognizes navigation as a crucial safety feature. Government officials are committed to ensuring that all vehicles are equipped with GPS systems. The European Committee for Standardization (CEN) and the European Telecommunications Standards Institute (ETSI) have issued initial guidelines for smart transport collaboration.
Renault, Mitsubishi Electric, Denso, Bosch, Nissan, Garmin, Hyundai, Toyota, and others are prominent players in the region. Major automobile OEMs and their products are widely adopted in the market. For instance, passenger car sales in Europe increased from 14,000 units in 2020 to 15,900 units in 2021. Safety and security services play a significant role in the automotive market, with navigation regarded as a key safety measure.
Automobile manufacturers and Tier 1 suppliers in the region are exploring the potential of navigation services in data-driven solutions, aiming to develop their own digital services in areas such as traffic management and navigation technology. For example, Robert Bosch has partnered with navigation service provider TomTom to offer mapping services for autonomous vehicles. These services not only benefit automakers but also support auto dealers in providing GPS services for vehicles.
The increasing demand for electric vehicles, advancements in wireless communications, and the quest for optimal communication systems are pivotal factors guiding the automotive and related industries in this domain.
Companies like Aisin Aw Co. Ltd., Alpine Electronics Inc., Clarion, Mitsubishi Electric Corporation, DENSO Corporation, Harman International Industries Inc., and others have secured significant shares in the market. These companies are focused on enhancing the functionality of navigation systems by integrating technologies such as artificial intelligence (AI) and augmented reality (AR) to meet the increasing demand for advanced navigation systems in automobiles.
In April 2022, Mapbox announced its availability in select Toyota and Lexus vehicles equipped with the next-generation multimedia system developed by Toyota Motor North America. This system aims to deliver driving experiences that surpass customer expectations. The Mapbox Map Software Development Kit enables drivers to navigate intuitively using a map design process that complements many of Toyota's other devices.
In December 2021, Tesla initiated the rollout of the new Automatic Driving (FSD) Beta software update (version 10.6) to its fleet, featuring improved product detection. The company has begun deploying a new FSD Beta version for US owners with a security score of 98 and above.
A vehicle navigation system is a component of the vehicle control system or a third-party add-on utilized for navigating the vehicle. Vehicle navigation can rely on GPS (Global Positioning System) or may utilize DVD or data.
Integrated car navigation systems are built into the vehicle. These integrated vehicle navigation systems offer entertainment features such as audio and DVD/Blu-ray disc players alongside navigation capabilities and remote data processing, often compatible with smartphones.
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Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.
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