Car navigation systems set for strong growth in Indonesia, Malaysia and Thailand
The company’s latest analysis shows that the car navigation market in these countries is expected to grow at a compound annual growth rate (CAGR) of 17.2% (2011-2018) to reach 2.08 million units in 2018.
It adds that personal navigation devices (PNDs), which had a market share of 93% in 2011, will remain the preferred device in the future.
‘The segment’s share however, is expected to drop, as consumers are slowly shifting towards embedded type navigation systems due to convenience and aesthetics,’ said Frost & Sullivan consulting analyst, automotive practice, Asia Pacific, Firhan Nair. ‘The introduction of android phones and tablets that offer free navigational applications is also acting as a restraint for the overall navigation systems market.’
OEM systems are currently offered by some brands for higher-grade models but OE and dealer fitments only accounted for 7% of the total navigation systems market in 2011.
Luxury brands such as BMW and Mercedes-Benz have standardised their offering of navigation systems across majority vehicle line-ups. Other brands are beginning to recognise this as a unique selling feature.
‘The aftermarket segment will remain the dominant segment of the navigation systems market due to lower costs,’ Mr Nair concluded.
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