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US PND market doubles in Q2
- Leaders Garmin, TomTom and Magellan have more than 80% of the
market
Palo Alto and Reading (UK) - Thursday, 14 August 2008
For immediate release
- US PND (Portable Navigation Device) shipments rose to 3.7
million in Q2 2008
- Unit shipments were up sequentially on Q1 2008, by 32%
- Shipments in Q2 2007 were 1.9 million, meaning a rise of 96%
year-on-year
- But rapidly declining prices mean market value has only
increased by 20%, making it tough for vendors
Highlights from the Canalys Q2 2008 research
Shipments of PNDs in the US almost doubled in Q2 2008 compared to
a year ago as the demand for personal navigation continues to grow.
At 3.7 million units, shipments were substantially up on the 2.8
million recorded in Q1, which were depressed following inventory
build-up resulting from extremely high sales into the channel in the
final quarter of last year. While this rise in volumes will be
welcome news for many vendors, average prices continued to fall,
with Canalys estimating an approximate 40% drop year-on-year.
Canalys estimates that Garmin remained the US market leader with
47% share, up 4% on its Q1 position, but down slightly on the 50% it
had a year ago. TomTom, in second, saw year-on-year growth
substantially above the market average, almost trebling its
shipments, and giving it a share of 25%. Despite this high growth,
this was down on the 28% it had in Q1, meaning that Garmin increased
its lead by several percentage points sequentially. Magellan
retained its third place with a reduced 11% share. These three
vendors have consistently taken more than 80% of the market for
several quarters. Outside of the top three, several vendors posted
high year-on-year growth, notably Mio Technology, Navigon and Nextar,
albeit on much lower volumes.
“The market is showing huge growth in terms of units sold, but
this is coming at a price,” said Chris Jones, Canalys principal
analyst and vice president. “Price-cutting has left several vendors
struggling to turn a profit, and the economic climate isn’t helping.
Meanwhile they have to continue to finance research and development
to ensure they have the right feature set to attract future new
buyers and those who will soon be considering upgrading from the
systems they already have.”
Canalys expects to see more consolidation in the PND arena over
the next 12 months. Vendors in this space will also have to adapt to
the rising threat of navigation solutions on mobile phones and smart
phones, which Canalys estimates accounted for around half a million
additional new users in Q2, led by companies using
subscription-based payment models, such as NIM (Networks in Motion)
and TeleNav.
“We expect to see the rise of not just navigation, but an array
of map-enabled and location-based services (LBS) on mobile phones in
the coming quarters,” said Canalys analyst Caroline Chow. “LBS, in
various forms, have been talked about for years, but consumer
awareness and acceptance of the benefits of personal navigation,
combined with improvements in positioning technologies and the
rising number of GPS-enabled devices in consumers’ hands are all
helping to provide a strong foundation for this market to develop.”
“There will be a shake-up in business models as PND vendors, in
particular, have to address the mobile phone threat and the shift
toward business driven by connected, dynamic services,” Jones added.
“Carrier and channel relationships will need to change and develop
alongside consumer propositions and payment models. Putting a phone
inside a PND may give you a new product, but it doesn’t give you a
strategy.”
Location and the future of navigation will be key topics of the
Canalys Navigation Forum, being held in Half Moon Bay, California on
14–15 October 2008. Sessions will look at mobile advertising, mobile
social networking and the role of dynamic content as well as the
types of navigation solutions that we will be using in the future
and the technologies that will enable them. Presentations and panel
sessions will also analyse the navigation value chain in more depth
and explore what value mobile navigation has for channel partners.
To find out more about this key industry event, please visit
http://americas.canalysnavigationforum.com. There are a limited
number of complimentary places still available for accredited press.
To take advantage of this unique opportunity to gain access to
industry experts and insight into this changing market please
request a place, registering as press
here.
About the Mobile Navigation Analysis services
The shipment estimates discussed in this release come from the
market-leading Canalys Mobile Navigation Analysis services. Canalys’
globally consistent market segmentations and definitions are used by
vendors the world over to provide a coherent view of the total
market for mobile navigation solutions on PNDs, GPS-enabled portable
media players, mobile phones, smart phones and handhelds. Clients
receive quarterly market updates, regular reports, trends
presentations, webcasts, forecasts and direct access to Canalys
analysts. Canalys offers services looking at the navigation and
smart phone markets by country in APAC, North and Latin America and
EMEA, as well as providing global market overviews and survey-based
analysis of consumer and enterprise attitudes and preferences toward
mobile applications, devices and services. More information is
available from the Canalys web site.
About Canalys
Canalys specialises in delivering high quality market data,
analysis and advice to the world’s leading technology vendors. It is
recognised as a key provider of continuous advisory services and
confidential custom projects for marketing managers and strategists
within blue-chip IT, telecoms, navigation and consumer electronics
companies. It has unrivalled expertise in routes to market for all
kinds of high technology products and services in the consumer, SMB
and large enterprise segments, and provides worldwide market data
and trends analysis.
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