How Long Can The PNAV Boom Be Sustained?

ABI: Unprecedented growth in the European PNAV (personal navigation) market has the more successful vendors witnessing year-over-year growth in excess of 600%. With some vendors even reporting initial supply constraints. Questions just how long this growth will continue. We believe the market explosion Europe currently faces has been caused by three main factors First, the cost of these devices have come down dramatically. Second, several vendors have been fully able to leverage the marketing and distribution channels available to them. Finally, the added feature of traffic awareness for dynamic navigation in many PNAV models has made the offerings even more compelling. Teh report warns that leading European aftermarket PNAV vendors such as TomTom, Navigon, and Mitac must not rest on their laurels. Despite distribution deals with automakers to offer PNAV models on some new car models, vehicle manufacturers will not sit idly by for long and allow PNAV devices to usurp the sales of factory-installed navigation systems. Additionally, the influx of me too PNAV devices currently flooding the market only proves that market leaders must continue to increase the functionality of their devices in order to maintain their lead. Automotive Infotainment Research Service. Publ 20060119