While PNDs and in-dash navigation device sales continue to suffer from the economic recession, handset-based turn-by-turn navigation is boosted by the rapidly growing smartphone segment. ABI Research expects the number of paying handset-based turn-by-turn navigation users to increase to 26 million by the end of 2010 with the Asia-Pacific region experiencing the strongest growth.
In the wake of a continuous stream of eye-catching touchscreen smartphone launches, navigation software developers are rushing to port their solutions to as many new platforms as possible, such as Android (ALK, Telenav) and the new Palm webOS (Telenav). According to practice director Dominique Bonte, however, “The most significant driver for the uptake of handset navigation is expected to come from the iPhone, following Apple’s decision to finally enable turn-by-turn navigation on its latest 3.0 platform version.” Software from TomTom, Sygic, AT&T (Telenav), and Networks In Motion is already available from the iPhone App Store, with Navigon’s solution expected soon.
While application stores are expected to become an important channel for the distribution of navigation software, many carriers and handset manufacturers prefer to pre-install or bundle navigation software with their phones and offer plans based on strategic partnerships with navigation developers. Examples include Verizon/NIM, AT&T/Telenav, Vodafone/Telmap LG/Appello, HTC/ALK Technologies, and Samsung/Route 66. Market leaders Nokia and Vodafone have respectively opted to acquire navigation providers Gate5 and Wayfinder, allowing tighter integration of navigation and LBS services into their portfolios. Both approaches often coexist.
owever, several barriers still remain in place. “High monthly subscription fees and data roaming costs will need to be addressed for off-board navigation on handsets to reach high penetration levels,” Bonte believes. Free ad-funded navigation is one possible way forward with Locationet’s Amaze solution powering Technocom’s SpotOn GPS platform, Huawei’s new GPS phones, and Bouygues’ free navigation offer in France.
ABI Research’s “Automotive Navigation Forecasts Market Data” provides shipments, installed base and revenue forecast data for all consumer navigation form factors including in-dash OEM, in-dash aftermarket, PNDs, on-board and off-board handset-based navigation, and new navigation form factors such as MIDs and PMPs. It is part of the Location Based Services Research Service.