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Smartphone Navigation Booms in China But Doubts Over In-Car Future

by sbd uk
17. January 2012 13:34

Press Releases | Technology and Event Reviews

Article by David Montgomery orginally published in GPS Business News. The growing navigation market in China isn't following patterns set in Europe and the US. Andrew Hart, Senior Telematics & ITS Specialist at SBD, talks to GPS Business News about emerging trends in smartphone navigation, embedded solutions, the ultra low-cost aftermarket industry, software pirating and the growth of offboard navigation.

Smartphone navigation is projected to have outgrown the rest of the Chinese navigation market in 2011 but isn't likely to lead to in-car revenue opportunities.

That's according to Andrew Hart, Senior Telematics & ITS Specialist at SBD, which recently published a report on the trends for navigation systems in China. Although smartphone integration in the car is being seen as the route to a lower cost experience in Europe and the US, the analyst said there is a big question-mark over whether it will be the same in China.

“So whilst it's having a big role out of the car we are not convinced it's necessarily going to lead to much revenue opportunities inside the car,” he said. Hart said one reason is because from a vehicle manufacturer's point of view, integration solutions for smartphones are expensive compared to ultra low-cost aftermarket and PND solutions in China.

He said that solutions such as MirrorLink still require hardware such as a display and processor to be fitted in the car – all of which adds to the cost. “There's a feeling of why would you pay USD200-300 for a smartphone integration kit when you can get a fully-embedded solution that fits nicely with the car and has a premium feeling?” he said.

“So while smartphone navigation is clearly huge outside the car, we are not convinced that will translate to a large number of people asking for integration of smartphone navigation inside of the car.”  
 
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SBD has been closely tracking the navigation trends in China and predicts that by 2015, there will be 115 million navigation units shipped per year in China, which will make China the largest navigation market globally. To succeed, it is essential to understand the dynamics behind this growth and how different segments within the navigation market (OE, aftermarket, PND, tablet and smartphone) will evolve. SBD's latest report, Navigation Trends in China enables you to achieve this through a unique combination of three elements:

•    SBD's in-depth segment-by-segment analysis
•    An industry survey of over 100 key stakeholders (including respondents from 21 vehicle manufacturers)
•    Profiles of different navigation system owners based on a recent End-user survey of 800 consumers

Interested in learning more? Why not have a FREE initial discussion with SBD experts by contacting us on info@sbd.co.uk or on +44(0)1908 305 101.
 
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