Factory Installed Automotive Navigation Solutions to surpass portable GPS devices by 2015 image

According to a report from ABI Research, the total in-car navigation market is set to grow with a CAGR of 25.9% over the next five years. Factory-installed navigation solutions are set to overtake PND shipments by 2015, reaching 25 million units.

Much of this growth is in the perpetually commoditizing smartphone application market, reaching over 395 million downloads by 2016. However, there will continue to be a place for high-quality navigation services and features, particularly as car OEMS begin to support connected services, enabling applications to leverage information about the car and the driver.

According to the analyst firm Berg Insight, there were more than 150 million turn-by-turn navigation systems worldwide in mid-2009, including about 35 million factory installed and aftermarket in-dash navigation systems, over 90 million Personal Navigation Devices (PNDs) and an estimated 28 million navigation-enabled mobile handsets with GPS.

The auto navigation business was humming along until October 2008, when Google introduced Android, an operating system for mobile devices that extended Google Maps and its navigation programs to cellphones.

Since then, 65 million people have bought GPS-enabled Android phones, according to Gartner, and many use them in their cars.