The Asia Pacific Automotive Navigation Systems Market is anticipated to register a CAGR of about 7.56% during the forecast period (2020 - 2025).
Due to the changing lifestyles of customers and the increased surge in purchasing power of cars, sales of navigation systems are experiencing a higher demand in the Asia Pacific Region.
Also, with the growing demand for accuracy, supply Chains such as Amazon, Flipkart, Zomato rely even heavily upon these applications. Car-sharing services like Ola, Uber, and Grab also depend on navigation-based technology, which provides a real time-definite delivery system. As a result, GPS navigation systems are very commonly used in the transportation and logistics industry. As mobile phone usage has risen, smartphones as GPS trackers shall also increase.
Developing economies are the largest influencer of the GPS navigation market. For instance, in India, car ownership was only 5% in 2011, and in 2019 this figure is more than double at 11%. 60.3% of adults in China accessed the internet through their mobile phones. This figure is projected to grow to 84.8% percent in 2025.
Although, hindrance such as high cost of navigation, telecommunication, cybersecurity, and infrastructure connectivity can slow the growth rate. Also, with increased fuel prices, low demand for self-driven cars over the past years, and the emergence of electric vehicles, the industry may experience a slower growth rate.
Key Market Trends
GPS is Largely Used in E-Commerce and Online Cab Booking Services
The primary features of an automotive navigation system are integrating real-time data, map updates, and smartphone integration. With the growing accessibility to the internet through mobile phones, manufacturers are opting for all built-in functions of an in-vehicle GPS in users' smartphone system itself while keeping the costs low.
The demand for navigation systems is growing in demand, especially amongst ride-hailing apps, which are expected to push the market. GPS devices are largely used by car fleets such as Uber and Grab to manage their cars' pool by keeping track of their driver's and passenger's activity. Both passive and active tracking is a viable source of information to the owner. Analysis of this stored data and real-time tracking is very useful to the industry for commercial purposes.
Due to congestion on highways, transit systems, and streets, the estimated delays worldwide are resulting in productivity loss with billions of dollars getting wasted annually. Also, sectors such as e-commerce and logistics are heavily hit with such inefficient navigation tracking. As a result, reliance on navigation systems with improving technology for locating various addressees in traffic on both highways and roadways to suggest different routes based on real-time traffic has become an essential feature of GPS based systems.
China is Leading Asia Pacific Automotive Navigation System Market
The logistics industry accounts for 14% of India's GDP. However, it remains deeply fragmented and experiences many operational losses and loopholes related to delays and deviations. To counter this issue, we could see mandating automotive navigation systems as a solution to this problem.
Although countries like India, Vietnam, and Bangladesh are at the nascent stage, the GPS navigation market still has a large potential for growth. Due to the increasing popularity of smartphones and growth in acceptance amongst the younger generation, Asia Pacific Automotive Navigation System Market has a large room for expansion.
Moreover, countries like China, Japan, and South Korea have seen an exponential demand in smartphone functions to be built into in-vehicle infotainment systems. As a result, manufacturers opt for a modular hardware architecture to reduce the purchase price of GPS systems. Their greatest desire is for all their smartphone functions to be built into GPS systems at a low cost.
In most Western countries, GPS devices are now being used for over two decades now, significantly improving operational efficiency and cost. However, the trend suggests that the GPS market is no longer limited to the North American or the European market, China and India will become the largest market by 2025.
Competitive Landscape
The Asia Pacific Automotive Navigation System market remains consolidated with already existing players over the past decade. The key players in the Asia Pacific Automotive Navigation System Market are Alpine Electronics, Aisin Aw Co.Ltd, Continental AG, Clarion, Pioneer, Mitsubishi Electric Corporation, Garmin and Denso Corporation. Although to have the edge over its competitors, the major actuators manufacturing companies are making joint-ventures, partnerships to launch newer products.
For instance, in January 2018, Amazon partnered with the Garmin company to integrate Alexa's voice-assistant into its navigation systems functionalities.
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