Competition from Apps Leads to Decline in Navigation Device Shipments

Global shipments of Personal Navigation Devices (PNDs) declined to about 33m units in 2011, according to research carried out by Berg Insight, and are forecast to decline further, to 23m, in 2016. This is due to increasing competition from smartphone navigation systems, the report claims.

The number of mobile subscribers using a turn-by-turn navigation app or service on their handset doubled in 2011, to reach 130m worldwide. This number is forecast to grow at a compound annual growth rate (CAGR) of 21.9 per cent, to reach 340m users in 2016.

Broad availability of GPS handsets and attractive pricing are key factors for widespread adoption of mobile navigation apps, according to the report.