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GPS Navigation System Marketability Factors

Navigation systems have become increasingly affordable and are now the target of consumer electronics competition

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Automotive Market Becomes Communication Media

Navigation systems have become increasingly affordable and are now the target of consumer electronics participants who view the automotive market as an untapped opportunity, notes Frost & Sullivan Research Analysts. Convenience, efficiency and the need to avoid using paper maps seem to be driving interest in navigation systems.

Fifty nine per cent of non-navigation users interviewed appeared interested in purchasing a navigation system in the future. However, respondents in the United Kingdom were not interested in navigation systems, which were considered an unsafe option when compared to multi-maps.

In terms of ownership, Tom Tom had the highest penetration of navigation systems across Europe, followed by Sony, Blaupunkt, Navman, Garmin and Acer.

Respondents rated ease of use (interface with the system) as the most important factor in their decision to purchase a navigation system, followed closely by the cost of the system. Ease of installation was also an important consideration, which suggests that potential customers need a hands-on demonstration prior to purchase. Vehicle manufacturers and suppliers would benefit from educating consumers at their dealerships and explain who navigation systems work.

According to the interviews, consumer electronic retailers were found to be the preferred purchase channel, which points to the fact that respondents need to touch and feel the system prior to purchase. Whilst almost 60 per cent of fixed system owners were purchased at the car dealership, there were four key purchase channels for portable owners, which consisted of consumer electronics stores, the Internet, car accessory shops and department stores.

Consumers realise the benefit of embedded navigation systems and are ready to pay 2 to 3 times over and above the price of a portable device. In this price-centric market, portable systems are set to dominate, given their obvious price advantages.

Consumer Desirability & Willingness to Pay for Navigation Systems and Features is part of the Automotive and Transportation Growth Partnership Service, which also includes research on different product domains in the Telematics and Infotainment industry. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years.

Edited by Carolyn Allen, owner/editor of California Green Solutions
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