According to a new research report by Berg Insight
the number of mobile subscribers downloading navigation routes using
their mobile handsets is expected to grow from 16 million users in 2008
at a compound annual growth rate (CAGR) of 27.9 percent to reach 70
million users in 2014.
The growing adoption will be driven mainly by
the introduction of GPS-technology in smartphone handsets and bundling
of navigation applications with mobile devices or service plans.
Following the introduction of the first GPS enabled handset in Europe
in 2007, there has been a massive increase in the number of models
available from Nokia and other manufacturers. Increasing volumes have
paved the way for widespread adoption of mobile navigation services in
Europe.
Meanwhile the US market has continued to grow to a level of 6
million active subscribers to mobile navigation services in Q2-2008.
The anticipated launch of GPS enabled handsets by the GSM operators
AT&T and T-Mobile USA are expected to drive further growth in 2009.
André Malm, telecom analyst, Berg Insight says, "The mobile industry is
now starting to reap the benefits from the introduction of GPS enabled
handsets. However, most mobile navigation users only use the service
during a free trial period. The key challenge will be to convert these
test-users into paying subscribers."