PND shipments to grow in 2009, but prices to decline, says Berg Insight
Portable navigation device (PND) shipments in Europe and North America will continue to grow into the next decade, according to Berg Insight. The research firm also forecasts that shipments will reach 56 million units in 2012. However, eroding prices are expected to cause a decline in revenues in 2009.
"The personal navigation market has enjoyed phenomenal success in the recent years," said Andre Malm, senior analyst at Berg Insight. "Since 2004 the market has grown from more or less zero units to approximately 37 million this year. Adoption is still increasing and many innovations are still to be made but from now on there will no longer be easy profits for anyone in this industry."
Fierce competition and commoditization of entry-level devices are the main reasons for the market slowdown, Berg Insight suggested, adding that the market is sensitive to fluctuations in consumer spending. Adapting to the new situation, Berg Insight believes that vendors will increasingly seek to focus on value-added services that generate recurring revenue streams. In this context, devices with mobile broadband connectivity will become more and more important, according to the research firm.
"The Internet can take the navigation industry forward," said Malm. "Live maps and traffic information can potentially change how people drive their cars. By aggregating all relevant data at one place in the vehicle, the navigation industry can contribute to make driving more safe, economic and environmentally friendly."
"The personal navigation market has enjoyed phenomenal success in the recent years," said Andre Malm, senior analyst at Berg Insight. "Since 2004 the market has grown from more or less zero units to approximately 37 million this year. Adoption is still increasing and many innovations are still to be made but from now on there will no longer be easy profits for anyone in this industry."
Fierce competition and commoditization of entry-level devices are the main reasons for the market slowdown, Berg Insight suggested, adding that the market is sensitive to fluctuations in consumer spending. Adapting to the new situation, Berg Insight believes that vendors will increasingly seek to focus on value-added services that generate recurring revenue streams. In this context, devices with mobile broadband connectivity will become more and more important, according to the research firm.
"The Internet can take the navigation industry forward," said Malm. "Live maps and traffic information can potentially change how people drive their cars. By aggregating all relevant data at one place in the vehicle, the navigation industry can contribute to make driving more safe, economic and environmentally friendly."
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