GPS Market Set to Navigate North of $22 B by 2008
With units available for less than $100, global positioning system (GPS) receivers are now affordable to the masses, enabling applications unthinkable just 18 months ago. These emerging applications, plus renewed growth in existing markets, will help propel the global GPS market north of $22 B by 2008, according to technology market research firm ABI.
GPS consists of a cluster of two dozen satellites enabling devices to pinpoint their location within feet of their actual location. New applications on the rise include people tracking, automatic vehicle location (AVL), asset tracking and recreational use. “On the automotive platform, GPS has enabled a host of new telematics applications, from tracking a teen’s use of the family car to automatic tax collection for interstate trucking companies,” states Frank Viquez, director of Automotive Electronics at ABI. “GPS is the engine driving much of the telematics industry.”
In a study recently released by ABI, equipment for the automotive and asset tracking segments will account for nearly 50 percent of the global GPS market by year end 2003 and will continue to gain share through 2008. Further findings indicate that handset and people tracking markets will experience the largest growth rates, significantly outpacing the overall market growth of 12 percent through 2008. The study also examines the market for GPS integrated circuits (IC). Though unit growth will be very strong in the GPS market, continuing pricing pressure for ICs will temper overall revenue growth to about that of the overall equipment market.
The study, “GPS World Markets: Opportunities for Equipment and IC Suppliers,” examines the current status and trends of the global positioning systems industry. Covered areas include wireless and in-vehicle navigation as well as growing segments such as recreation, communication, people tracking, marine and surveying, among others. For each segment, total market value is forecasted to 2008 in addition to regional totals. An analysis of key market drivers and barriers for each segment is presented. The report also quantifies the market for GPS IC shipments, ASP and revenue to 2008. For more information on this study, please visit http://www.abiresearch.com/reports/GPS.html.