The North America Automotive Navigation Systems Market is anticipated to register a CAGR of about 6.28% during the forecast period (2020 – 2025).
- With the growing demand for accuracy, automotive navigation technology helps in tracking and forecasting the supply chains by including application which provide real time-definite delivery system. Moreover, Car sharing services heavily rely on navigation-based technology as result Ola, Uber and Grab are expected to push the market growth.
- In 2018, United States recorded 127.24 million U.S. dollars in revenue. The United States policy makers are mandating the integration of navigation systems in automobiles to develop databases to helps transportation organizations maintain costs, reduce maintenance and improve road safety. All these changes will drive the growth for Automotive Navigation Systems in the North American Market
- Although, hindrance such as high cost of navigation, telecommunication, cyber security and infrastructure connectivity can slow the growth rate. Also, with increased fuel prices, low demand for self-driven cars over past years and emergence of electrical vehicles, the industry may experience a slower growth rate. Nevertheless, GPS is an essential element in the future of Intelligent Transportation Systems (ITS).
Key Market Trends
GPS largely use in E-commerce and Online Cab Booking services
The primary features of an automotive navigation system is to integrate real-time data, map updates, and smartphone integration. With the growing accessibility to the internet through mobile phones, manufacturers are opting for all built in functions of an in-vehicle GPS in users smartphone system itself while keeping the costs low.
- The demand for navigation system is growing in demand especially amongst ride hailing apps which are expected to push the market. GPS devises are large used by car fleets such Uber and Grab to manage their pool of cars by keeping a track on their driver’s and passenger’s activity. Both passive and active tracking are a viable source of information to the owner. Analysis of this stored data and real-time tracking is very useful to the industry for commercial purposes.
- Due to congestion on highways, transit systems, and streets the estimated delays throughout the globe in resulting in productivity loss with billions of dollars getting wasted annually. Moreover, sectors such as e-commerce and logistics are heavily hit with such inefficient navigation tracking. As a result, reliance on navigation systems with improving technology for locating various addressees in traffic on both highways and roadways to suggest different routes based on the real-time traffic has become an essential feature of GPS based system.
Easy access and favorable government policies will drive the growth of this market
The growth of market is not just limited to a shift in consumer demand but government regulations as well. In 2019, North America led the Navigation System market with a market share of 31%. With 75% being passenger cars which contribute towards 60% market revenue of the navigation systems markets
· Moreover, many North American governments are mandating fleet management by using GPS systems. With the law in action every new car would require 3G/4G enabled GPS system. GPS installed in vehicles can help locate a crash to carry out on-sit or off-site investigation. For instance, in an event of a crash, sensor technology can be used to gather data on weather, pavement condition, and traffic volumes and speeds. All this data can be transmitted remotely as well.
Additionally, GPS help local government organizations survey its road and highway networks, by identifying the location of features on the road networks. These include emergency services, maintenance, service stations and other information related to the road system, etc. This information serves can be accesses in the form later purposes. This database provide with the knowledge which can help local or state transportation agencies reduce additional maintenance and service costs, while enhancing the safety of drivers using the roads
The market is experiencing a study growth over the last few years. The market remains ever evolving with newer technology and favorable government regulations. For instance, in January 2018, Amazon partnered with Garmin company to integrate Alexa voice-assistant into its navigation systems functionalities.
However, the market remains consolidated with already existing players over the past decade. The key players in the North America Automotive Navigation System Market are Alpine Electronics, Aisin Aw Co.Ltd, Continental AG, Clarion, Pioneer, Mitsubishi Electric Corporation, Garmin and Denso Corporation
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