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Issue #2003 - 27 (October 2003)
(Updated Oct. 22, 2003)


ABI Forecasts Bright Outlook for GPS Market

With units available for less than $100, global positioning system (GPS) receivers are now affordable to the masses, enabling applications unthinkable just 18 months ago. These emerging applications, plus renewed growth in existing markets, will help propel the global GPS market north of $22 billion by 2008, according to technology market research firm ABI.

GPS consists of a cluster of two dozen satellites enabling devices to pinpoint their location within feet of their actual location. New applications on the rise include people tracking, automatic vehicle location (AVL), asset tracking, and recreational use. The industry has been given a further boost by the E911 initiative in the United States, as wireless carriers look to GPS to enable positioning to meet the Federal Communication Commission's mandate.

"On the automotive platform, GPS has enabled a host of new telematics applications, from tracking a teen's use of the family car to automatic tax collection for interstate trucking companies," states Frank Viquez, Director of Automotive Electronics at ABI. "GPS is the engine driving much of the telematics industry," he adds.

In a study recently released by ABI, equipment for the automotive and asset tracking segments will account for nearly 50% of the global GPS market by year end 2003 and will continue to gain share through 2008. Further findings indicate that handset and people tracking markets will experience the largest growth rates, significantly outpacing the overall market growth of 12% through 2008. The study also examines the market for GPS integrated circuits (ICs). Though unit growth will be very strong in the GPS market, continued pricing pressure for ICs will temper overall revenue growth to about that of the overall equipment market.

The study, "GPS World Markets: Opportunities for Equipment and IC Suppliers," examines the current status and trends of the global positioning systems industry. Covered areas include wireless and in-vehicle navigation, as well as growing segments such as recreation, communication, people tracking, marine and surveying, among others. For each segment, total market value is forecasted to 2008 in addition to regional totals. An analysis of key market drivers and barriers for each segment is presented. The report also quantifies the market for GPS IC shipments, ASP and revenue to 2008.

About ABI
ABI is a N.Y.-based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. 

MobileInfo Comments and Advisory: ABI research forecasts a strong market. While we see GPS applications becoming more widespread, telematics itself has not taken off.  GPS is still an expensive technology for handsets who would like a location identification hardware to be around $10-20. There is no reason to believe that the industry will not be able to bring the prices down. Wi-Fi chip has more intelligence than GPS It is just a question of numbers. Those involved in GPS market should rejoice. Outlook is bright. 

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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