PND shipment growth will continue despite threat from Smartphones

The personal navigation device (PND) market is showing signs of maturity as price points decline sharply, consolidation occurs, and shipment growth slows; and the most looming threat is the rapidly growing GPS-enabled mobile phone market according to In-Stat.

Nevertheless, PND shipment growth will continue due to affordable price points for the mass market, automobile manufacturers’ desire to offer cheap navigation options, and the potential growth in connected PNDs. Yet, due to the weak economy and its impact on consumer spending, demand for these higher-priced connected PNDs has yet to take off. In-Stat expects that if the costs to incorporate a cellular modem decrease, there will be a stronger opportunity for connected PNDs.

In the meantime, PND manufacturers should continue to explore ways to participate in the GPS-enabled mobile handset market in order to sustain revenue opportunities. In-Stat predicts:

  • Worldwide unit shipments for PNDs will reach approximately 53 million units in 2013.
  • The total silicon opportunity for PNDs will reach $1 billion by the end of 2010, and then start to decline.
  • GPS-enabled mobile phone shipments will reach almost 700 million units by 2013.

Source: GPS World.

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