The global automotive navigation system market size is expected to be valued at USD 37.89 billion in 2024 and reach USD 60.58 billion by 2029, growing at a CAGR of 9.84% from 2024 to 2029.
The rise in traffic jams is driving the automotive navigation market growth. The growing use of GPS navigation systems in cars to get live traffic information and prevent gridlock is propelling the market growth. It is also growing because of increasing investments in the development of better cloud infrastructure. The integration of smartphones with in-vehicle systems is a major factor contributing to the growth of the automotive navigation systems market. The rise in smartphone penetration in recent years has raised demand for table or mobile-based navigation systems. Moreover, the desire for connected automobiles will grow due to high consumer demand for internet cars and access on the move. The automotive industry is expected to adapt to a digital lifestyle, leading to increased demand for vehicle navigation systems from supply-side vendors.
Technology developments are boosting the automotive navigation system market growth. One such invention is the device that combines navigation systems with traffic data. These modern devices give users precise driving directions, display traffic jam data, and suggest other routes. Furthermore, the extra features and integrations offered by companies will increase demand for car navigation systems. For example, some car GPS systems have color LCD panels that could be used to watch TV or DVD movies. These days, vehicle navigation systems can be linked with information systems for public transportation and traffic, and they can provide personal meeting management.
5G and 6G networks will significantly expand the automotive navigation system market. It offers wide coverage, fast speeds, and low latency, which are required for new developments in transportation. Vehicles must be capable of operating with their basic features within the car independent of external connectivity. It also presents the opportunity to solve the loss of navigation connection problem. It must still possess sufficient knowledge to function and determine its location and requirements. Personalization and contextual awareness are other factors that will expand the market growth. It includes AI-powered route optimization. It uses user preferences, driving habits, and real-time traffic conditions to suggest personalized routes beyond the shortest distance.
The automotive navigation system market growth is hindered by high costs and data security. These are equipped with modern capabilities like dynamic route planning and real-time traffic updates, which increase the prices. This is a major obstacle for tight-budget customers. It is even more important in price-sensitive developing economies. Additionally, data security is a big factor for end-users when buying any connected vehicle. Cyberattacks and data breaches are increasing. This makes people reluctant to trust these technologies with their personal data and travel routines. Many people are also concerned that hackers could gain access to personal location information or take control of navigation systems.
The automotive navigation system market growth is derailing due to outdated maps and information. It is one of the most common issues people are facing. Incorrect or outdated maps are frustrating and undermine the navigation system's value. The delays in updating in rapidly developing areas are damaging user trust and confidence. Moreover, connectivity issues are another problem limiting the growth in market share. This decreases functionality and customer satisfaction because of weak internet in places with poor coverage. The availability of free and convenient navigation apps on smartphones presents a tough competition. Their wide functionality, real-time traffic updates, and affordable accessibility have captured a big market share of in-vehicle systems.
COVID-19 had an unfavorable impact on the global automotive navigation system market because of the travel restrictions. The market growth was affected due to several issues. It includes labor shortages, supply chain issues, working capital management, and changes in regulations and policies. Car sales fell 30 percent in March 2020 compared to the same month the previous year, and auto factories closed for over a month. Despite this, to minimize the pandemic's effects, organizations developed strategic cost-cutting programs. Furthermore, Automakers are investing in CASE (Connected, Autonomous, Shared, and Electric) developments. They are also focusing on cybersecurity because remote work environments and collaborations have created new avenues for threats.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
9.84% |
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Segments Covered |
By Platform, System type, Vehicle Type, Device Type, Propulsion type, Component, and Region. |
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Various Analyses Covered |
Global, Regional, and Country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Alpine Electronics, Inc. (Japan), AISIN SEIKI Co., Ltd. (Japan), Clarion (UK), Continental AG (Germany), Delphi Technologies (UK), DENSO CORPORATION. (Japan), Garmin Ltd. (US), HARMAN International. (US), HERE (Netherlands), JVCKENWOOD Corporation (Japan), Pioneer Corporation. (Japan), Telenav, Inc. (US), TomTom International BV. (Netherlands), NNG Software Developing and Commercial Llc. (Hungary), Robert Bosch GmbH (Germany), Mitsubishi Electric Corporation (Japan), Ford Motor Company (US), BMW Group (Germany) |
The Windows computer embedded segment remains prevalent in the premium and luxury section due to its focus on safety and security. It holds strong in North America and Europe. Whereas Android dominates the mass market, It engages budget-conscious buyers with its flexibility and user-friendliness and gains traction in Asia and emerging markets. In the future, merging Android's customization with Windows CE's security could arise as a future hybrid solution.
The factory-fitted IVS (pre-installed system segment) is leading in terms of market share. These are integrated with the car's hardware and software. Factory-fitted systems offer seamless operation and a premium user experience. Major car manufacturers like Tesla and BMW are leading the regional market trend. However, the cost is often added to the car price, making them a pricier option compared to aftermarket or portable solutions.
The mid-premium passenger vehicles segment is gaining traction and is expected to grow further in the coming years. Buyers prioritize value for money and choose systems with essential features like touchscreen displays and voice control at a reasonable price. It offers both factory-fitted and premium aftermarket systems to enhance functionalities and connection with other in-car technologies.
The in-dash segment is the biggest category with a significant market share. Factors like augmented reality displays, head-up displays, and voice control are driving the automotive navigation system market. Moreover, luxury car companies focus on these systems for a premium and integrated driving experience. Furthermore, the market will shift towards intuitive interfaces, seamless voice control, and personalized navigation features customized to individual needs and preferences.
The ICE segment dominates the automotive navigation system market due to its large installed base, price sensitivity, and limited EV penetration. ICE vehicles still make up the majority of cars globally. Thus expanding the market for navigation systems. Moreover, these vehicles are typically more affordable than EVs, leading to portable devices or smartphone apps over in-dash systems in navigation systems.
The hardware segment holds the maximum market share of the global automotive navigation system industry. It includes displays, processors, and antennas. This has traditionally been the dominant segment due to its tangible nature and direct impact on user experience. However, the software is crucial for navigation, encompassing route algorithms, real-time traffic updates, and seamless integration with other car systems.
Asia Pacific's automotive navigation system market is growing at a rapid pace when compared to other regions. This is due to rising disposable income and the presence of major automotive companies. The market share will increase because of factors such as increasing urbanization, rising consumer demand for automobiles, growing car rental activities, and high smartphone penetration with improved internet connectivity and accessibility to local and international suppliers. Additionally, rapid technological advancements and growing commercial vehicle demand are expected to elevate the market size.
Europe is anticipated to thrive at a notable growth rate in the global automotive navigation system market during the forecast period. The safety and security services account for the highest share of the regional market. This is why government authorities want all cars to have GPS units installed. Furthermore, the European Committee for Standardization and the European Telecommunications Specifications Institute have released the first set of specifications for cooperative intelligent transportation systems. The proposed program includes all new cars to have 4G or 5G networks and GPS to provide the groundwork for automobile navigation systems.
North America is predicted to witness a higher CAGR in the coming years. Governments in North America are pushing for GPS-based fleet management. Hence, every new car would need to have a GPS that supports a fast internet network. Moreover, cars with navigation systems can help locate collisions for on-the-spot or off-spot investigations. For instance, sensor technology can be used to gather information on traffic volumes, weather, pavement quality, and speeds in the event of an accident.
Latin America is estimated to grow at a steady market growth rate during the forecast period. Brazil is promoting local manufacturing and technology transfer in the automotive sector, which will drive the regional market forward. The desire for in-vehicle navigation systems is increasing. This is due to increasing smartphone penetration and expanding mobile data networks. Thus, it is paving the way for internet-based navigation solutions in the region. However, economic instability and limited infrastructure might hinder the market growth.
In the forecast period, the Middle East and Africa are projected to account for a major portion of the global automotive navigation market share. In the first half of 2023, the regional market share saw a noticeable increase. This is due to rising oil prices and increased tourism, which boosted the purchasing power. As a result, the demand for car upgrades and navigation systems went upward. However, in the second half, the market slowed down a bit. Geopolitical tensions and inflation impacted consumer spending.
Alpine Electronics, Inc. (Japan), AISIN SEIKI Co., Ltd. (Japan), Clarion (UK), Continental AG (Germany), Delphi Technologies (UK), DENSO CORPORATION. (Japan), Garmin Ltd. (US), HARMAN International. (US), HERE (Netherlands), JVCKENWOOD Corporation (Japan), Pioneer Corporation. (Japan), Telenav, Inc. (US), TomTom International BV. (Netherlands), NNG Software Developing and Commercial Llc. (Hungary), Robert Bosch GmbH (Germany), Mitsubishi Electric Corporation (Japan), Ford Motor Company (US), BMW Group (Germany). These are some of the market players that are dominating the global automotive navigation system market.
By Platform
By System Type
By Vehicle Type
By Device Type
By Propulsion
By Component
By Region
Frequently Asked Questions
The Automotive Navigation System Market is expected to grow with a CAGR of 9.84% during the forecast period.
Asia Pacific is currently dominating the Automotive Navigation System Market share by region.
OEMs dominate the Automotive Navigation System Market by End-User type.
As of the latest data, The global automotive navigation system market size is expected to be valued at USD 37.89 billion in 2024
Alpine Electronics, Inc. (Japan), AISIN SEIKI Co., Ltd. (Japan), Clarion (UK), Continental AG (Germany), Delphi Technologies (UK), DENSO CORPORATION. (Japan), Garmin Ltd. (US), HARMAN International, etc.....
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