Navigation devices and systems will generate global revenues of $62bn by 2012

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"Despite disappointing sales levels in the first quarter of 2008 and profit warnings issued by TomTom, Tele Atlas and SiRF, the navigation market still faces a bright future," says Dominique Bonte, ABI Research principal analyst. "The current decrease in sales has to be seen as a logical reaction following the extraordinary sales growth during the fourth quarter of 2007, especially in the United States."

The PND remains the most prevalent type of navigation device, but is increasingly complemented by other form factors such as on-board and off-board handset-based navigation and low-cost factory-installed in-dash systems.

At the same time, navigation capabilities are being integrated in an increasing number of new form factors such as portable gaming consoles and Mobile Internet Devices.

Consumer navigation is also maturing, with more reliable solutions being offered by a large number of vendors. While features such as text-to-speech and real-time traffic are becoming available on an ever-larger number of devices, new features such as pedestrian navigation, dynamic content and live local search on connected devices are also being introduced.

However, in an increasingly competitive and complex mass market, branding, communication, and market share are becoming key success factors, often achieved by consolidation and vertical integration, and the window of opportunity for small, innovative companies to enter – and stay in – the market is closing quickly.


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