A new report by ABI Research indicates that handset-based navigation shipments are expected to grow at a Compound Annual Growth Rate (CAGR) of 43% over the next five years, rising from 30 million in 2010 to 181 million in 2015.
According to telematics and navigation practice director Dominique Bonte, “The handset navigation boom is largely driven by free turn-by-turn navigation solutions recently made available by Nokia and Google. During its last earnings call, Nokia announced that Ovi Maps had already been downloaded more than 10 million times. While Google Maps Navigation was initially only available on Android phones in the US, it is expected to be introduced gradually on other platforms and in other markets, as demonstrated by the recent launch in the UK.”
ABI noticed that increasingly, navigation services are being included in packaged offers from handset vendors and carriers, subsidized by smartphone hardware or data communication revenues.
“These new business model paradigms upset the traditional value chain in which the end user pays directly for value-added mobile services, said Bonte. “They put pressure on the smaller independent vendors which are unable to leverage market share and brand to generate new revenue streams such as advertising, to reduce costs through crowd sourcing, or to offer bundled services. Consolidation will be unavoidable.”
According to telematics and navigation practice director Dominique Bonte, “The handset navigation boom is largely driven by free turn-by-turn navigation solutions recently made available by Nokia and Google. During its last earnings call, Nokia announced that Ovi Maps had already been downloaded more than 10 million times. While Google Maps Navigation was initially only available on Android phones in the US, it is expected to be introduced gradually on other platforms and in other markets, as demonstrated by the recent launch in the UK.”
ABI noticed that increasingly, navigation services are being included in packaged offers from handset vendors and carriers, subsidized by smartphone hardware or data communication revenues.
“These new business model paradigms upset the traditional value chain in which the end user pays directly for value-added mobile services, said Bonte. “They put pressure on the smaller independent vendors which are unable to leverage market share and brand to generate new revenue streams such as advertising, to reduce costs through crowd sourcing, or to offer bundled services. Consolidation will be unavoidable.”
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