NaviGadget

GPS navigation system market facts

Jan 7, 2009 CES 2009, gps navigation, misc news

Consumer Electronics Association just revealed these facts about the ever expanding GPS navigation system market – however we don’t think these numbers reflect the current state of the industry.

Although the navigation market has seen impressive growth over the past year, it still remains a small market with just 18% of online adults owning a GPS-enabled device. Most owner households have just one GPS product, but 30% have two or more units.

• Reasons to purchase GPS systems vary widely. Only 54% of online GPS owners
  said navigation assistance was a reason they bought a GPS-enabled product. Attesting
  to the convergence of GPS receivers, 28% of online owners said GPS was an included
  feature of another product they purchased.
• Friends and family, as well as Internet news/review sites are the most popular sources of information about GPS devices.
• As GPS has evolved from a product to a feature, sales channels have multiplied for the technology. While 58% of GPS owners purchased their device through traditional CE retail channels (including online merchants), 11% of owners made their purchase at ‘another retail location’ and 31% acquired the technology ‘somewhere else entirely’.
• Current GPS owners spent an average of $441 to buy the technology. As one might expect, mean spending on permanent in-vehicle GPS systems was highest ($615) followed by portable GPS devices ($366) and cell phone GPS products ($323).
• Price is not necessarily the most important factor influencing GPS purchases. In making their purchase decision, owners of permanent in-vehicle GPS systems were less concerned with price compared to owners of portable/handheld GPS units.
• Owners of permanent in-vehicle GPS systems are the most frequent users of GPS.
• Overall satisfaction among GPS owners is high (80%). Owners of permanent invehicle navigation systems exhibit the highest levels of satisfaction with the technology (87%).
• GPS purchases over the next year could account for $4.1 billion in sales. Almost one-quarter (24%) of online consumers are planning to purchase a GPS device within the next year, with average planned spending equaling $410.
• Future buyers are less concerned with brand in evaluating products before making a purchase decision. Rather display quality, price and warranty are the most important product elements guiding the sale.
• Manufacturers of dedicated GPS devices should be wary of the growing threat of GPS-enabled cell phones. The study shows 33% of future GPS buyers are interested in owning a cell phone that has GPS capabilities.

Let us know what you think. Anything surprising?