Demand for Navigation Systems Soars
Worldwide shipments of car navigation and Global Position Systems are expected to more than triple between 2006 and 2012. iSuppli predicts that the total market shipment of navigation systems will rise from 19.8 million in 2006 to 65.1 million in 2012.
This market, once dominated by embedded systems, is now controlled by Personal Navigation Devices which are handheld and can be used in or outside of the vehicle. “The rise in popularity of PNDs has encouraged the two leaders in this market-TomTom and Garmin-to expand their business. These companies now are two of the fastest growing semiconductor buyers in the world because demand is so hot,” said the principal analyst for automotive electronics at iSuppli, Richard Robinson.
Due to this demand TomTom and Garmin are experiencing more competition, especially from ODM Mitac in Taiwan. Mitac now controls 20 percent of the market, closely trailing Garmin (25 percent). TomTom is No.1 with control of 37 percent.