ID: MRFR/AM/6393-CR | 100 Pages | Published By Swapnil Palwe on July 2022
The automotive navigation systems market size is projected to be worth USD 30,134.3 Million by 2030, registering a CAGR of 7.9% during the forecast period (2022–2030).
An automotive navigation system is one of the most vital parts of an automobile control system that gives the current location of the vehicle and provides real-time navigation as per the given directions. An automotive navigation system finds its application in passenger cars, heavy commercial vehicles, and light commercial vehicles based on its requirement. The future market outlook for sales of automotive navigation systems market seems astonishing due to its consistently increasing applications and the adoption and installation in electrical vehicles.
A navigation system is an essential system utilized in automobiles for route mapping. Its purpose is to supervise and manage the vehicle's movement as it makes its way from one location to another. The global automotive navigation system market has seen significant growth in the last couple of years and is expected to remain in a growing phase during the forecast period. The global automotive navigation system market is majorly influenced by factors such as the growth of the automotive industry, increase in traffic congestion, increasing adoption of car GPS navigation systems, growing population, growing demand for real-time traffic data, and growing investment to develop automotive infrastructure in emerging countries.
With the continuous spread of the novel coronavirus worldwide, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The situation remains uncertain as more European companies suspend work activities, and the US and Asia-Pacific automakers extend shutdown periods. The automakers' plans on North American production are an effort to slow the spread of the COVID-19 virus; however, currently, the region is the global epicenter of the outbreak, with the daily number of confirmed cases outstripping the number in any other region. In the US and Canada, the government's response has been a combination of state or provincial, federal, and local measures. In other regions, governments apply seemingly ever-more stringent conditions on social interaction, travel, and workplace attendance. These regions are experiencing similar situations, which are having a marked effect on the economy as well as society and causing massive economic disruption, with the automotive industry at the center of this turmoil.
The regional impacts of the pandemic outbreak are highly variable, but as it spreads, the status in the harder hit areas provides a glimpse of what may be witnessed in the near future. China saw a 79% drop in the automotive market in February 2020. As a result, Chinese auto manufacturers petitioned the government to stimulate the market through subsidies, tax breaks, and temporary reductions in emissions requirements.
Navigation systems provide optimized routes from one location to another. It is primarily aided by external technologies such as the Global Positioning System (GPS) and satellite-based radio navigation systems. GPS has many advantages such as high accuracy, usability, reliability and self-calibration. However, GPS is limited to outdoor operation. The practice of combining data from different sources to improve overall results is often used in various fields. GIS has been integrated with GPS to provide visualization and implementation aspects of a given location. Thus, the growing application of navigation systems market on the account of its high reliability and scalability is a driving factor for the growth of market.
High cost of navigation systems and availability of alternatives such as smartphone GPS are some of the major factors hindering market growth. A factory-installed navigation system means the system is installed on the vehicle as original equipment, just like a radio or seat belt. Many consumers like this option because it means the system can be seamlessly integrated into the vehicle. It is part of the dashboard and can be controlled without any additional switch remote.
An automotive navigation system is a navigation system for cars. Major luxury automakers offer dashboards and aftermarket products. These are used as positioning systems, which aid in vehicle tracking and localization. The main industries that use these technologies are transportation and logistics, as these industries have a variety of vehicles. Increasing adoption of wireless communication technologies has been a major factor in the market. Wireless communication technologies include various IT equipment such as Wi-Fi, Bluetooth, ZigBee and cellular networks (GSM, UMTS and LTE).
The outbreak of COVID-19 has resulted in the break of supply chain especially in the emerging nations, such as China, Taiwan, Singapore, amongst others. The shortfall of semiconductor has halted the development of new automotive vehicles which in turn has negative impact on the production of new automotive vehicles. Thus, the increasing shortage of semiconductor chips due to growing supply chain issues is a major challenging factor for the growth of Automotive Navigation Systems market.
Asia Pacific region is anticipated to dominate the Automotive Navigation Systems market throughout the foreseeable future. Asia-Pacific is predicted to register a significant CAGR during the review period due to developing regions like India and China, which are more inclined toward using high-end automotive components like navigation systems. Furthermore, rapid industrialization in the region due to the low cost of manufacturing is expected to benefit the Automotive Navigation Systems market growth. Additionally, the presence of large automotive manufacturers like Toyota Motor Corporation, Nissan, Suzuki, Tata Motors, Daihatsu and several others is expected to accelerate the market growth in the coming years.
The use of automobiles in Europe has been growing steadily due to the rising per capita disposable income among individuals. The presence of major automotive manufacturers in the region, including PSA Peugeot Citroen, Mitsubishi Trucks, Isuzu, and Volkswagen, is anticipated to create new opportunities for domestic manufacturers and suppliers of automotive parts and components.
The global automotive navigation systems market is expected to showcase healthy growth throughout the forecast period. The global market represents strong numbers in terms of consumption and is expected to grow year on year. The global automotive navigation systems market is highly fragmented, with a majority presence of tier-1 players.
Some of the key players operating in the global automotive navigation systems market are Continental, Alpine, Robert Bosch GmbH, Denso, Aisin Seiki, Faurecia Clarion, Garmin Ltd., NNG Software, TomTom, Harman, HERE Technologies, JVC Kenwood, Pioneer, and Telenav.
Technological advancement associated with automotive navigation systems in recent years and increasing application areas of navigation services are pivotal factors that drive the global automotive navigation systems market. This report has segmented the global automotive navigation systems market based on device type, vehicle type, propulsion, and sales channel. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global automotive navigation systems market emerging and fast-growing segments, regions, and countries.
|Market Size||2030: USD 30,134.3 million|
|CAGR||7.9% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Device Type, Vehicle Type, Propulsion and Sales Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa|
|Key Vendors||Continental, Alpine, Robert Bosch GmbH, Denso, Aisin Seiki, Faurecia Clarion, Garmin Ltd., NNG Software, TomTom, Harman, HERE Technologies, JVC Kenwood, Pioneer, and Telenav|
|Key Market Opportunities||Increasing Application Area of Navigation Systems|
|Key Market Drivers||High Cost of the Navigation Systems|
The global automotive navigation systems market would register a growth of 7.9%.
High operating cost associated with automotive navigation systems.
Asia-Pacific would enjoy the upper hand in the automotive navigation systems market.
China, as the largest consumer, would set the trend.