North America Rising In GPS market

MCOS: North America’s entry into the Global Positioning System (GPS) market in 1991 has been accompanied with well laid road networks whose names do not change for many miles. As a result, navigation systems are almost redundant and hence, have been slower than other parts of the world in adopting navigation systems. However, navigation systems are expected to increase in popularity with new types of navigation and other inventive applications.

The total revenues of North American GPS equipment market will be doubled by 2010 from the current $4.9 billion as in 2005. Further, the Global Positioning System equipment revenue from end-user groups contribute 52% from consumer sector, 40% from commercial sector, and 8% from military sector.

It is found that North American GPS equipment markets are being boosted by alliances and high volume consumer applications. With continuous fall in prices for low-end GPS, the inexpensive consumer access is likely to make it a high-profile electronics market. However, as market matures the profit margins per unit are expected to decline. GPS Market Update – 2005 Publ 20051205