Smart phone-based vehicle navigation systems will account for nearly half of automotive navigation sales in 2011, supplanting the previously prominent roles held by in-dash systems and portable navigation devices, according to IHS iSuppli research.
Smart phone solutions are projected to take in 49.6 percent of all unit sales for automotive navigation this year, up from 40.6 percent in 2010 and more than double the 23.4 percent share the segment enjoyed in 2009. By 2012, smart phone navigation will cross the 50 percent threshold for all unit sales in vehicle navigation, well ahead of all other contending systems in a virtually unbeatable lead for years to come.
The relatively recent ascendance of smart phones in the automotive navigation space ties in with the device’s well-known versatility and multifarious capabilities. Where navigation is concerned, smart phones are able to download third-party navigation software after the device is sold—a critical difference from static on-board systems with only local storage of the navigation map.
The capability to download navigation software is also what distinguishes the smart phone from its lesser cousin, the mobile phone—in which navigation software is pre-loaded and whose use of other navigation features may be more restricted. Unlike mobile phones, smart phones can use pinch-in and pinch-out for map view, for instance, thanks to the smart phone’s built-in multi-touch and other sensors.
For this reason, vehicle navigation unit sales from the mobile phone, tracked separately by the industry, will not be as strong as those related to smart phone navigation, IHS iSuppli research shows.
What’s Left then of the Traditional Model?
As automotive navigation increasingly relies on solutions provided by both smart phones and mobile phones, interest will fade away for in-dash solutions and portable navigation devices (PND), the traditional purveyors of the function.
In the case of in-dash solutions, participants are realizing that growth in the segment can only be achieved through a significant change in strategies. As opposed to the old practice of staging one implementation per vehicle model, manufacturers now are introducing low-cost in-dash solutions that work across multiple car models and brands. In particular, Volkswagen, Mazda, Nissan and Hyundai/Kia have partnered with traditional Tier 1 navigation suppliers for this purpose.
For their part, PND vendors, like TomTom or Garmin, are looking keenly for alternatives to ensure that they stay competitive. While PND brands can lay claim to consumer recognition, the players in the space do not enjoy the strong ties that exist between manufacturers of in-dash solutions and automotive manufacturers. However, IHS believes that PND vendors are now a significant competitor in the in-vehicle space, and the challenge for traditional automotive suppliers is to come up with competitive low-cost solutions, similar to those being provided by their portable rivals.
Next-Generation Navigation to be Linked to the Cloud
Over the next five years, navigation systems will be adding a communication link to take advantage of content stored in the cloud. Static databases will become a thing of the past, and units not connected to a service or the cloud will become irrelevant over time, IHS predicts.
Under such a model, navigation systems will have access to the latest maps, points of interest and traffic conditions. And while devices with on-board maps can operate in standalone mode, the use of cloud-based navigation content will provide better performance and accuracy.
In particular, navigation systems will continue to evolve, giving way to smart phones and smart-phone-like head units. Connectivity modules will allow smart phones to be integrated with most infotainment systems, rendering traditional navigation systems obsolete over time.
Read More > Automotive Navigation: Moving From Systems to Software