Consumer Navigation Still Facing Many Challenges On Its Way to Mass Market Adoption, Says ABI Research

Business Wire, Oct 24, 2008

LONDON -- While much of the debate in the consumer navigation industry seems to focus on new features such as 3D maps, multimedia, connectivity, local search, convergence, and business models, the most important issue confronting navigation vendors is how to grow navigation beyond the current penetration rate of 20% to a virtually ubiquitous experience embraced by all layers of society in North America and Europe.

"Mass market adoption will require creative thinking far beyond the current paradigms," says ABI Research director Dominique Bonte. "First and foremost an uncompromisingly intuitive and simple navigation interface will need to be designed, combined with seamless multi-mode map updates, predictive traffic information, shorter GPS fix times and a wide range of dynamic and relevant content. In order to address the diverse user needs and behavior of all consumer segments, a large choice of form factors and price levels will have to be offered."

Connected navigation will only be successful to the extent that it supports the drivers mentioned above, moving away from either a purely technical or a purely financial approach aimed at creating new revenue streams to stave off price erosion. The removal of barriers such as 3G coverage and costs, lack of interoperability, and user education will take time, while navigation systems will have to support (or interface with) other LBS applications such as social networking and real-time search in order to offer a richer end user experience.

Growth in developing regions such as India, China, Russia, and Brazil will be driven by digital map coverage and will be instrumental in increasing economies of scale, in turn improving the margin levels of the major navigation brands such as TomTom, Garmin, and Nokia in an increasingly complex navigation ecosystem characterized by a large number of partnerships.

"Consumer Navigation Devices and Systems" (http://www.abiresearch.com/products/market_research/Consumer_ Navigation_Systems_and_Devices) (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.), a new study from ABI Research, examines the major navigation features, form factors, trends, drivers and barriers. It describes the navigation ecosystem, and provides strategic recommendations. The study also contains forecasts for shipments and revenue. It forms part of the firm's Location Aware Services Research Service (http://www.abiresearch.com/products/service/Location_Aware_Services).

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call 1.516.624.2500.