Strategy Analytics predicts that 36 percent of vehicles sold globally will include some form of OEM embedded navigation.
High prices limited initial market penetration, however Strategy Analytics predicts that competition from smartphone navigation and PNDs will force automotive OEMs to rethink navigation as part of a larger infotainment package.
Richard Robinson, director of the Strategy Analytics Automotive Multimedia and Communication Service, said, â€œWhile Western Europe, North America and Japan will enjoy the highest attachment rates, many consumers in developing markets will expect some form of navigation solution in their vehicles as well.â€
John Canali, automotive multimedia and communications service senior analyst at Strategy Analytics, noted, â€œPortable consumer electronics, such as smartphones, have significantly disrupted the traditional OEM installed navigation market. To counteract the portable device market, automotive OEMs must leverage their advantages, such as superior usability and display size.
â€œThey must supplement navigation systems with increased connectivity. Portable navigation device makers and aftermarket installed navigation suppliers will struggle to compete against OEM navigation, as well as smartphone and tablet-based navigation solutions.â€
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