Global Positioning Systems (GPS) Market Worldwide is Projected to Reach US$28.9 Billion by 2015, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Global Positioning Systems market. Changing consumer attitudes towards portable navigation functionality, improving quality and reliability of personal navigation systems, and restoration of health of the telecommunication and transportation industry in the post recession period will trigger the world global positioning systems market to reach US$28.9 billion by the year 2015.

Global Positioning Systems (GPS): A Global Strategic Business Report

With the world financial crisis led economic recession now playing out in full proportions, the telecommunication industry, like all other industries, stands acutely impacted by the crisis. The unusually pronounced length, breath, depth and magnitude of the recession have taken a large bite out of carriers’ revenues and profitability. Decline in consumer usage of telecommunication services, lower levels of new subscriber additions, falling average revenue per user, and traffic reductions have distorted the business climate over the last two years. Additionally, drying up of the debt market and the resulting shortages in capital investments, played instrumental roles in derailing network coverage expansion, and upgradation schedules. Repercussions of the US financial crisis were manifested through the Asian capital markets in the form of reduced flow of foreign capital into the region, thus impacting network operators dependent on foreign capital. Scheduled 3G auctions were thrown into the back burner in most countries, investments in next generation technologies like LTE and WiMax took a hurting blow, sharp reductions in IT spends by companies wrestling with the unfavorable business climate resulted in reduced cross-country traffic for international long distance carriers.

The gloomy business environment in the telecommunication industry has had a trickle down impact on both the GPS services and handset market, with handset manufacturers being especially roughed up. Economic uncertainties, rising rates of unemployment, decline in discretionary incomes, reduction in household wealth, crumbling consumer confidence, have all resulted in postponement of new device purchases thus lengthening the handset replacement cycle. Frugal consumer spending, with the prime-shopping motif being value for money, resulted in erosion in sales of high-end, expensive, premium communication devices and handsets. All of these factors culminated in witnessing sales of GPS units slip southwards. World market GPS was additionally pushed into a double dip recession during the years 2009, and 2010 with the beleaguered automotive industry casting a cold dampener on market opportunities for GPS applications in in-vehicle navigation.

Deterioration in personal financial conditions of consumers is creating a distinctive shift towards to low-budget GPS devices. With consumers on the prowl for value for money deals, price is beginning to attain importance as a crucial variable influencing purchasing decisions. This trading down to lower price points, as a result of consumer austerity in spending, offers a rich mixture and opportunities and challenges to players in the market with the winners being not the financially stronger companies but rather companies prepared to negotiate changes in shifting consumer preferences and needs. Interestingly, tight budgetary conditions are helping A-GPS devices score over stand-alone GPS devices. Being relatively cheaper than in comparison with dedicated, stand-alone GPS devices, assisted-GPS (A-GPS), and mobile phones with GPS capability are witnessing relatively stable gains in the marketplace. The trend can be thrown into sharper relief by the fact that GPS-equipped smartphones have sustained their sales momentum much better in comparison to standalone GPS devices. Sleek, multi-functional smartphones with GPS capability currently fit the bill for myriad number of cash-strapped consumers keen on reducing ownership of multiple devices. Android phones with google maps offer inexpensive smartphone powered navigation capabilities.

As stated by the new market research report, the world Global Positioning Systems market is dominated by Japan and the US, which together account for a lion’s share of the world market. Segment-wise, Land-based GPS Applications have come under the yoke of the recession, displaying the worst erosion in value sales during 2009. However, with “Location Awareness” forecast to emerge into the most important buzzword for consumers seeking to instantaneously connect to places, resources and people in their immediate vicinity, demand is forecast to make a comeback in the post recession period. Economic stimulus packages extended by governments to revive rural, infrastructure, telecommunication network development, commerce, justice and science, energy & water, housing and transportation and military, will aid in shaping up key end-use application markets for GPS. For instance, restoration of health of the transportation industry will positively expand vehicle fleet size, and thereby the potential for GPS devices for in-vehicle navigation. Market for GPS based In-Vehicle Navigation Applications in Europe is estimated to cross US$1.5 billion mark by 2015. With fuel prices rising, after a temporary decline during the recession period, demand for GPS for in-vehicle navigation is expected rise, as drivers begin to realize the fuel benefits offered by quality routine guidance in reducing travel distances.

Key players in the Global Positioning Systems market place include Fei-Zyfer Inc., Furuno USA Inc., Garmin International Inc., Hemisphere GPS, ITT Corporation Geospatial Systems, KVH Industries Inc., MiTAC International Corporation, Magellan Navigation Inc., Mio Technology Benelux N.V, Navman New Zealand, NavCom Technology Inc., NovAtel Inc., Navico, Orolia Group, Raytheon Systems Co., Rockwell Collins Inc., SiRF Technology Holdings Inc., Sokkia Topcon Co. Ltd., Symmetricom Inc., TomTom International B.V., Trimble Navigation Limited, among others.

The research report titled "Global Positioning Systems (GPS): A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, challenges, competition, company profile, mergers and acquisitions and other strategic industry activity. The report provides market estimates and projections in (US$) for major geographic markets such as United States, Japan, Europe, Asia-Pacific, and Rest of World. End-use application markets analyzed include Land-Based Applications (In-Vehicle Navigation, Consumer, Survey/Mapping, and Tracking/Machine Control), OEM, Aviation, Marine, Military, and Timing.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Global_Positioning_Systems_GPS_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press(at)StrategyR(dot)com
Web Site http://www.StrategyR.com/

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