Increasing PND shipments while prices erode

26 November 2008, 2:59pm

Gothenburg, Sweden - November 26, 2008: According to a new research report by Berg Insight, PND shipments in Europe and North America will continue to grow into the next decade. Unit shipments are forecasted to peak at 56 million units in 2012 before stabilising. Eroding prices are however expected to cause a decline in revenues already in 2009. “The personal navigation market has enjoyed phenomenal success in the recent years”, said André Malm, Senior Analyst, Berg Insight. “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.”

Berg Insight perceives fierce competition and commoditisation of entry-level devices as the main reasons for the market slowdown. Furthermore the market is sensitive to fluctuations in consumer spending. Adapting to the new situation, Berg Insight believes that vendors will increasingly seek to focus on value-added services that generate recurring revenue streams. In this context devices with mobile broadband connectivity will become more and more important. “The Internet can take the navigation industry forward”, said Mr Malm. “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.”

Berg Insight

Geo: International