Automotive Navigation Market Raw Material Suppliers and Price Analysis Report 2022

The global automotive navigation market is expected to witness a surge in demand owing to the growth of automobile sales post the 2008 depression, increased demand from end consumers, availability of low-cost equipment, technological developments and initiatives by automobile manufacturers to offer on-board navigation systems. Innovations in wireless network and mobile technology may pose a challenge to the industry which provides cost-effective navigation services via smartphones.

Navigations systems make use of GPS (global positioning satellites) to triangulate position and aid users in path and route guidance. These systems may offer other relevant information such as traffic density and climate information. Modern navigation systems come as a part of infotainment systems already equipped with the automobile. Leading car manufacturers such as Toyota and Ford collaborate with navigation service & hardware providers to offer pre-fit systems to the users, creating demand for these systems and services. The market growth may also be attributed to factors such as low-cost of production and easy integration with the automobiles.

Navigations systems in automobiles are integrated with video and audio systems to deliver information to the users. Rapid development in user interface and responsiveness of these systems is anticipated to fuel growth. Navigation service providers collaborate with wireless network providers for data access, which works in favor of the market. The advent of self-driven cars may act as a key factor that drives demand over the forecast period.

Navigation systems can be classified into line-fit and brought-in systems. While leading car manufacturers already integrate navigation systems into their vehicles, the market exhibits potential for brought-in navigations systems owing to easy availability and low cost. The surge in automobile sales in developing economies is expected to create a healthy demand for brought-in systems.

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The automotive navigation market comprises of navigation hardware providers, software providers, navigation maps and service providers such as traffic, parking and weather forecast information providers. Some of the key players such as Harman, Bosch and Denso have collaborated with automobile manufacturers such as Ford and Toyota to boost demand. However, leading car brands like Audi and Mercedes-Benz often employ proprietary hardware and software in their navigations systems.

Car manufacturers opting for smartphone-based navigation system may pose a challenge to the industry. Further, wireless network providers coupled with internet map providers such as Google Maps and TomTom offer a cost-effective solution to automobile manufacturers allowing them to save the cost of navigation hardware and its installation into the vehicle. This acts as a challenge for the navigation hardware and software providers. Navigation technology, still in its nascent form often misdirects users, which acts as a drawback which may slow-down the market growth. However, initiatives to improve the system output along with advancements in device technology may provide impetus for industry growth over the next seven years.

North America is expected to emerge as a dominant market with the presence of a multitude of internet map providers such as Bing Maps and MapQuest Maps, followed by the European and the Japanese markets. The growing base of automobiles in developing nations portrays a strong potential for navigation service providers and hardware manufacturers. However, disruptive innovations such as availability of low-price smartphones and subsidized network rates may hamper product demand.

A healthy market growth is expected through automobile OEM (original equipment manufacturer) collaborating with auto companies rather than aftermarket sales. However, equipment manufacturers have already tapped into developing economies like China and India to elevate the brought-in system sales. The growing e-commerce market has also given rise to various logistics companies which offer real-time tracking of consignments to the users. Navigations systems play an important role here and are expected to be in demand over the forecast period. However, the use of mobile and availability of wireless network may continue to act as challenge for market growth.

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