The global market for global positioning system (GPS) is expected to show a high growth on account its extensive usage for navigation purposes. The industry is projected to grow at an approximate CAGR of 15% from 2016 to 2024.
Global positioning system (GPS), a space-based navigating equipment, helps in obtaining location, time and weather reports. This technology can be applied using a device with a GPS enabled receiver.
The U.S government created this system and made it freely accessible. It has broad applications in military, industrial & civilian areas and these application segments are expected to drive majorly overall market growth in near future as these devices are used in rescue operations to figure out the route.
Marine vessels can locate their position in deep oceans through this equipment. Technology advancement has helped in enhancing the product quality offering high-performance features.
Global positioning system enables the electronic devices including tablets and mobile phones to provide street view maps, navigational directions, traffic, and congestion maps features to consumers.
Such features are expected to drive GPS demand in electronic equipment as it helps the people to travel quickly from one location to another through these location finders. Trends have shown that mobile consumers have been using navigational techniques to search sites, check traffic congestion and locate a restaurant.
Rising smartphone users are the major factor expected to impact the global industry growth in near future positively. Most of the smartphones are used as GPS receivers. These smartphones are used for personal navigation by most of the consumers.
Exiting features such as voice-enabled location search has further increased the usage of GPS through mobile. GPS also provide information on nearby amenities which include restaurants, tourist attractions, movie theatres and fuel stations.
Google maps have shown a revolution in the navigation applications. High usage in public transport is anticipated to provide bright prospects to the overall industry growth in near future. Transportation services including Uber extensively use GPS devices to locate the customer position.
Further, it aids in selecting the shortest route as well as checking traffic congestion. It has become easy for customers to book a nearest located taxi with the help of a single click using these systems. Waiting time has significantly reduced on account of easy navigation.
Global positioning system devices are used in aircraft carriers to determine the longitude and latitude information. Increasing wireless instruments application is expected to fuel further the market demand.
Other applications including, transportation, construction, aerospace and agriculture is anticipated to favor the industry growth. The global positioning system industry is also expected to witness substantial growth on account of location-enabled services.
Smart devices development fitted with GPS receivers has been in high demand in recent years. These devices include smartphones, tablets, smart watches and cameras. Global positioning system offers benefits through low consumption of power and wireless connectivity.
Accuracy is the greatest challenge expected to hamper the overall market volume. High costs associated with implementation are projected to restrain the industry demand over the forecast period.
Clock inaccuracy and orbit shift of satellites are supposed to provide technical challenges towards GPS usage. Licensing, strict rules, and regulations are also expected to act as a significant barrier for rendering efficient services.
Global industry segmentation is done by the application which includes military, public transport, aviation, and logistics. Military-dominated the world market while logistics segment to witness significant growth in near future.
This technology is used in logistics to track the location of cargo in transit. Smart devices in the transportation industry are also anticipated to enhance overall product volume in near future.
North America dominated the global industry and is expected to continue its leading position over the forecast period. The industry is projected to witness substantial growth mainly on account of high technology use, coupled with growing superior navigation techniques demand.
Regional demand was followed by the Asia-Pacific market and is expected to show a steep rise owing to increasing smartphone devices usage in countries including China, South Korea, Japan and Vietnam.
European market demand is also predicted to increase in future owing to the high-end applications in the military. Key players present in the global industry include Navman products, TomTom products, Garmin products, Mio products, Navigon products, Magellan Navigation consumer goods, Satmap Systems Ltd, TeleType products.
Companies are mainly focusing on research and development to enhance accuracy and customer value addition. Manufacturers tend to collaborate with smartphone manufacturers to exploit the growing cellular phone industry.
In Late 2015, TomTom products signed a new contract with Uber to provide them with GPS technologies. Also, they extended their deal with Apple as their primary mapping data provider. The majority of the business occurs through the B2B market.
Therefore, companies need to establish effective sales and distribution channel to increase their revenues and expand their global presence.
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