RF Design Magazine

Novel GPS applications fuel growth

Jan 9, 2004 12:00 PM

Oyster Bay, N.Y. -- As consumer awareness of global position systems (GPS) increases, so has product innovation and total market revenue. While roughly half of the market today consists of sales of automotive and asset-tracking equipment, these segments will still continue to grow at rates faster than that of the broader market for GPS equipment. Despite the strength of these markets, new segments are constantly emerging for GPS applications, driving demand for gear as diverse as people-tracking devices and GPS golf systems. With units available for less than $100, GPS receivers are now affordable to the masses, enabling applications unthinkable just 18 months ago. These emerging applications, plus renewed growth in existing markets, will help propel the global GPS market north of $22 billion by 2008, according to technology market research firm ABI.

GPS consists of a cluster of two dozen satellites enabling devices to pinpoint their location within feet of their actual location. New applications on the rise include people tracking, automatic vehicle location (AVL), asset tracking, and recreational use. The industry has been given a further boost by the E9-1-1 initiative in the United States, as wireless carriers look to GPS to enable positioning to meet the Federal Communication Commission's mandate.

"On the automotive platform, GPS has enabled a host of new telematics applications, from tracking a teen's use of the family car to automatic tax collection for interstate trucking companies," states Frank Viquez, Director of Automotive Electronics at ABI. "GPS is the engine driving much of the telematics industry," he adds.

Companies like Garmin, Wherify Wireless and Navman are synonymous with integrating GPS receivers into innovative form factors. Advances in GPS integrated circuits (ICs) will fuel this trend across the entire industry. Sony's recent announcement unveiling a miniature, single-chip IC provides further evidence that more of these novel applications are likely in an ever-increasing range of devices.

According to a recent study from ABI, unit growth in ICs, the brains behind the devices' positioning capabilities, will likely be at about 35% compounded annually over the next five years. Revenue growth will be strong, but not as spectacular as unit growth, due mainly to pricing pressure.

The study, "GPS World Markets: Opportunities for Equipment and IC Suppliers," examines the current status and trends of the global positioning systems industry. Covered areas include wireless and in-vehicle navigation, as well as growing segments such as recreation, communication, people tracking, marine and surveying, among others. For each segment, total market value is forecasted to 2008 in addition to regional totals. An analysis of key market drivers and barriers for each segment is presented. The report also quantifies the market for GPS IC shipments, ASP and revenue to 2008.

For more information on this study, please visit http://www.abiresearch.com/reports/GPS.html

June Defense
 
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