Navigation applications and smartphone replication technology will lead to low-cost navigation, according to recent reports on the auto market in Europe and Russia.
In addition, smartphone-based navigation inside cars will dominate the European and Russian automotive navigation market.
Required automated emergency response systems will also result in Europe becoming one of the biggest markets for telematics systems, according to a new study from Frost & Sullivan. OEMs will use the eCall and ERA GLONASS mandates to provide telematics packages.
Frost & Sullivan also predicts there will be 19.3 million units by 2016 in European navigation systems OE (open embedded), aftermarket embedded and portable navigation devices (PND).
There will also be 413.2 million smartphone navigation subscribers and 5.2 million new telematics service subscribers by 2016 in Europe, MenaFN reported. Navigation systems in Russia will be 2.5 million units, smartphone navigation subscribers will be 4.4 million and new telematics service subscribers will be 415,000 by 2016.
"Smartphone replication technologies and navigation applications will usher an era of low-cost navigation, an area which used to be dominated by PNDs," Krishna Jayaraman, an analyst at Frost & Sullivan, said in a statement from the firm. "The eCall mandate will drive the market for telematics services. Mobile phone-based telematics systems will be popular in Europe owing to high smartphone penetration and lower costs."
Also, PND manufacturers are entering the OE sector with low-cost, in-dash solutions – leading them to compete with Tier 1 suppliers.
"Packaging of multiple services and offering them at attractive prices is the key to competitive survival," Jayaraman explained in a statement carried by TMCnet. "OEMs [original equipment manufacturers] will face the challenge of upgrading their system offerings with the latest human machine interface (HMI) to ensure consumer interest. Customer retention will lie in providing value-added services and smart pricing."
Edited by Rich Steeves