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Connected PNDs To Catch On: Report

Gothenburg, Sweden
– Eighty-eight percent of portable navigation devices (PNDs) shipped worldwide
in 2015 will include cellular connectivity, despite the low demand for the
feature initially, said Berg Insight.

“The connected PND
segment has had a slow start, but now seems to be on-track as business models
have been refined,” said senior analyst André Malm. The Berg report added that although
connected PNDs won’t win a large share in 2010, growth will pick up rapidly
once customers get used to new live services, such as traffic flow information,
speed-camera databases and up-to-date maps. “In only a few years time, wireless
connectivity will be taken for granted,” said Malm.

Berg Insight also
found that global shipments of PNDs will peak at approximately 50 million units
per year in 2012 and slightly decline thereafter.

Growing shipments
in emerging markets are not likely to fully compensate for the decline in
Europe and North America, where higher use of
smartphone GPS is wining over casual GPS users, it said.

The Berg Insight
report concluded, however, that many GPS device types will co-exist in the
future. “Most PNDs and in-car navigation systems still provide a better user
experience than many handset-based navigation services. Moreover, handset
navigation services are also well suited as a complement to other solutions,
especially for use outside the car,” said the report.