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Cell phones may hijack PND market as they can offer most of the features of personal navigation systems, says the In-stat report titled “Personal Navigation Devices: Worldwide Shipment Growth to Slow as Handset Navigation Arrives". The report said that mobile operators were unable to create enough awareness about the ability of cell phones to perform many functions of PNDs. 2007 is shaping up to be the year that mapping and navigation applications truly arrive on mobile handsets.

Mobile phone operators now have the ability to market a downloadable navigation application that is just as good as, if not better, than personal navigation devices (PNDs). As a result, handset-based mapping and navigation applications could cause a major change in the overall navigation market, which is now dominated by relatively expensive standalone devices. For approximately US$10 per month, handset navigation offers similar, if not superior, functionality to Personal Navigation Devices (PNDs), at a lower price, the high-tech market research firm says.



“Unlike MP3 players and digital cameras, handset-based navigation applications provide the only low-cost alternative product in a market of growing popularity,” says David Chamberlain, In-Stat analyst. “The value proposition for handset navigation applications is very strong compared with that of PNDs and, in some ways, the functionality is superior.”

The research found that cellular operators whose service is based on CDMA (and iDEN) have an advantage over other mobile operators in nearly every region of the world, largely because of the A-GPS technology originally driven by mandates to support E911 services.



"With a clear, targeted business strategy that focuses on capturing potential PND buyers, wireless service providers have an opportunity to capture market share from PND manufacturers," says Stephanie Ethier, In-Stat analyst.

Research by In-Stat found the following Cellular operators whose service is based on CDMA (and iDEN) have an advantage over other mobile operators in nearly every region of the world, largely because of the A-GPS technology originally driven by mandates to support E911 services.

• In-Stat surveys of US subscribers find navigation applications have a strong ability to draw subscribers from other operators and keep them loyal.
• The total number of mapping and navigation mobile phone subscribers could exceed 42 million worldwide by 2012.
• The market for PNDs will reach 56 million units worldwide by 2011, up from 14 million in 2006.
• Market drivers include falling price points, enhanced features, stronger consumer awareness of PNDs, and increased marketing and promotion by leading PND manufacturers.
• In 2006, PND manufacturers significantly reduced prices, with entry models priced under $200.

"With a clear, targeted business strategy that focuses on capturing potential PND buyers, wireless service providers have an opportunity to capture market share from PND manufacturers," says Stephanie Ethier, In-Stat analyst.



The research, "Personal Navigation Devices: Worldwide Shipment Growth to Slow as Handset Navigation Arrives" (#IN0703431ID), covers the worldwide market for Personal Navigation Devices (PNDs). It includes forecasts for unit shipments, average sales prices, and revenue through 2011. In addition, it includes results from a large-scale survey of consumer attitudes toward PNDs and mobile handset navigation applications. It includes extensive analysis of the consumer and business markets, current offerings for these services, with an outlook of the market’s potential. This report also offers a global view of wireless operators and vendors who are providing handset navigation applications.



While this most recent report provides insight into why the handset navigation market represents an impending threat to PND shipment growth, the report's overall focus is the worldwide PND market.

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