34% of all PNDs will feature real-time 2-way connectivity by 2013

34% of all PNDs will feature real-time 2-way connectivity by 2013

The emergence of connected navigation services such as real-time traffic, live local search and map updates is prompting many PND vendors to develop connected PND solutions with two-way real-time connectivity based on cellular or Wi-Fi technology.

"What's at stake is the generation of new recurring revenue streams in an increasingly competitive PND market characterised by spectacular price erosion," says ABI Research principal analyst Dominique Bonte.

In order to be successful, connected PND vendors will have to design seamless solutions and compelling services, and adopt the right business model. They will also have to embrace open development platforms to stimulate the design of third-party applications.

Apart from location-based applications, the most promising aspect of two-way connectivity is its ability to upload data in real-time, enabling PNDs to act as passive probes to collect real-time traffic flow information for redistribution it other users.

PNDs will now be used to upload user-generated content such as map corrections, POIs and recommendations. Upstream connectivity will also enable connected PND users to post their live locations on social networking sites.

All this will be facilitated by an emerging ecosystem providing tailored solutions for all levels of the value chain, such as dedicated chipsets, dedicated wireless connectivity solutions, connected navigation platforms and user interface frameworks.

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