The global navigation systems market will grow to $5.4 billion by 2010, according to CSM Worldwide. This represents 66 percent growth over today’s market, estimated at $3.2 billion.
Of the three major markets (Europe, Japan/South Korea and North America) the most significant growth will come from Europe. During the next five years the European market will grow by 103 percent, from $1.2 billion in 2005 to $2.5 billion in 2010. The North America market will grow by 91 percent during those five years, from $406 million in 2005 to $778 million in 2010. Japan/South Korea growth will be more modest over the five-year period, growing 32 percent from $1.6 billion in 2005 to $2.1 billion in 2010
“While the Japanese/South Korean market leads in the number of factory-installed navigation systems now, both the European and North American markets will double in unit volume by 2010,” said Don Montroy, Market Analyst, North American Component Forecasts for CSM Worldwide. “Lower piece prices have helped navigation systems go from optional equipment on mostly luxury programs to standard amenities on higher-end trim levels for some minivans, SUVs, pickups and mid-size cars. That trend will help continue the growth of navigation systems in the European and North American markets.
Currently, overall navigation system installation is the highest in Japan at about 16 percent of vehicle production. Europe and North America lag the Japanese market with overall installation rates of 8 percent and 3 percent, respectively.
“Both the European and North American market will benefit the most as the price for navigation systems drops and the feature migrates from luxury vehicles to mid-range programs,” continued Montroy.
CSM Worldwide (www.csmauto.com) supports more than 350 of the world's top automakers, suppliers and financial organizations with market intelligence and forecasting services. With corporate offices in metro Detroit, CSM Worldwide covers the global automotive environment from London, Frankfurt, Tokyo, Paris, Sao Paulo, Singapore, Shanghai, Bangalore, and Budapest.
