New York, US: ABI Research revealed that personal navigating device (PND) makers are shifting strategies as they face increasing competition from increasingly capable mobile applications. The research highlighted that PND market is expected to decline more than 40 percent by 2016.
“Most smartphones now come embedded with free navigation applications such as Google Maps,” said Lim Shiyang of ABI Research. “Although free, these navigation applications have started to match the performance of PNDs on a number of levels.”
One other advantage of smartphone applications stems from the fact that they can be connected to the cellular network and Internet. This fact became a catalyst which allowed developers to create much more sophisticated maps and navigational services.
“PND vendors are adjusting strategies to deal with slowing PND sales,” noted Dominique Bonte, group director, telematics and navigation. “TomTom, for example, is liaising with automotive insurance companies to provide individual driver statistics via PNDs for more accurate premium pricing for fleets while others, such as Garmin, are making inroads into mobile applications.”
The market can be seen moving away from mass market consumer goods to becoming low volume, high value as evidenced by the fact that now, nearly one-third of all products offered on the market are above the USD 500 mark.
Source: ABI Research