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PND Demand to Increase in Coming Years, as Prices Decline

5:55 am on December 30, 2008 | Category: Mobile Devices, Wireless Technology

Demand for Personal Navigation Devices in North America and Europe will continue to increase over the next few years, peaking at 56 million unit shipments in 2012, according to a recent forecast by Berg Insight.

“The personal navigation market has enjoyed phenomenal success in the recent years,” commented senior Berg analyst, AndrÃ© Malm. “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 between makers of PNDs is already causing a reduction in prices, and will likely lead to a decline in industry revenue next year, despite the increase in shipments. In the coming years, Berg expects vendors to focus more on value-added services such as mobile broadband, in an effort to build recurring revenue streams.

“The Internet can take the navigation industry forward,” Malm explained. “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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