Berg: PND Market to Peak at 42m Units in 2011

Berg: PND Market to Peak at 42m Units in 2011
According to a new research report from the analyst firm Berg Insight, global shipments of Personal Navigation Devices (PNDs) will peak at about 42 million units in 2011 and gradually decline thereafter.

The market research firm forecasts that “Growing shipments in markets such as Brazil, China, India and Russia are not likely to compensate for the decline in Europe and North America.”

“In mature markets where the installed base of PNDs is already high, the device category is facing increasing competition from smartphones and low-cost in-dash navigation systems. However, aftermarket navigation systems will be the largest segment for several years to come and many customers, especially in Europe and North America, are likely to use more than one navigation capable device for different occasions in the future.”

Berg Insight forecasts that more than 80 percent of PNDs shipped worldwide in 2015 will have integrated cellular connectivity. The firm also estimates that replacement devices now account for about one third of sales in mature markets.

“Customers looking for a new PND typically want a larger screen and new services such as traffic information or speed camera warnings,” said André Malm, senior analyst at Berg Insight. “Vendors need to communicate the advantages of connected services, such as better traffic information, in order to educate potential customers and stimulate demand.”

Tuesday, November 9th 2010

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