Key Trends and Forecasts for the North American and Latin American Automotive Navigation and Telematics Services Market

This Frost & Sullivan research service titled Key Trends and Forecasts for the North American and Latin American Automotive Navigation and Telematics Services Market provides market trends, recent developments, and technology roadmap. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: navigation (original equipment manufacturer (OEM), aftermarket) and telematics (OE fitment).

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Market Overview

Smartphone-interfacing Solutions to Power Smartphone-based Automotive Navigation in the Americas

Low-cost Navigation and Telematics Services Help Participants Make Inroads into the Mass Market

The North and Latin American automotive navigation markets are on the cusp of a shift to connected navigation systems that offer real-time traffic information and local search. Navigation systems, be it OE fitment, aftermarket, or portable navigation device (PND), are feeling the heat of the competition from smartphone-based navigation applications. These applications are powered by technologies such as MirrorLink, which port applications from phone to head unit. Low-cost smartphone replication technologies are helping navigation markets breach the perimeter of the mass market. PNDs were the pioneers of low-cost navigation but are gradually losing ground to smartphone-based navigation. To offset their market slide, PND manufacturers are venturing into OE business to provide low-cost in-dash solutions; however, this will pit them directly against Tier 1 suppliers.. Even so, it is expected that PND manufacturers’ partnerships with OEMs will usher in the low-cost navigation trend in North America.

“Smartphone-based navigation’s success is compelling traditional OEMs to change their business models to incorporate smartphone replication technologies,” says the analyst of this research. “The greater participation of consumer electronics vendors will enable automakers to better provide interfacing solutions to match product innovation.” Meanwhile, in the telematics market, which is either driven by a mandate or influenced by the success of major OEM participants, OEMs are likely to aim for standardization. Telematics companies will be challenged to retain customers post the free trial period. To stay afloat, they have to offer value-added services. Advanced technologies aim to present navigation in ‘automotive grade’, which was earlier considered unsafe. With high smartphone penetration, OEMs are also using smartphones interfacing solutions to differentiate their products in the market. Despite the potential for growth, they have to be careful to maintain competitive prices, as price-sensitive consumers will base their purchase decision on costs. They will not be willing to pay for an application that is already available on their smartphones at attractive price points.

“While the North American market will notice a change in value chain dynamics and introduction of newer business models, Latin America is still nascent and offers immense opportunities for all types of navigation systems,” notes the analyst. PND’s growth in Latin America is a prominent trend, while the stolen vehicle tracking (SVT) mandate will put Brazil on top in the telematics market. Success in Latin America will be decided by the ways in which different navigation systems are marketed in that region. For instance, OEMs will use the SVT mandate to offer different telematics service subscriptions. The market will also witness the entry of several non-native suppliers.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

Navigation

Original equipment manufacturer
Aftermarket

Telematics

OE fitment

Technologies

The following technologies are covered in this research:

Smartphone
SVT

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Executive Summary

Research Objective, Scope, Methodology and Background

Definitions and Segmentation

Market Overview

Mega Trends and Industry Convergence Implications

Total Automotive Navigation and Telematics Services Market

North American OEM Embedded Navigation Segment Breakdown

North American PND Navigation Segment Breakdown

North American Aftermarket Embedded Navigation Market

North American Smartphone Navigation Segment Breakdown

North American Telematics Services Segment Breakdown

Latin American Navigation and Telematics Segment Breakdown

Conclusions and Future Outlook

Appendix