Europe Automotive Navigation System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Europe Automotive Navigation Systems Market is anticipated to register a CAGR of about 5.89% during the forecast period (2020 - 2025).
There is an ever-growing demand for accurate automotive navigation technology. It helps in tracking and forecasting the supply chains, which provides a real time-definite delivery system. Applications such as e-commerce and food delivering apps rely on the are application. Moreover, car-sharing services like Ola, Uber, and Grab heavily rely on navigation-based technology. As a result, the Europe Automotive Navigation Systems Market is expected to see growth upwards in the upcoming years.
In 2019, Europe recorded 117.04 million U.S. dollars in revenue and the second largest by geography. The EU policymakers are mandating the integration of navigation systems in automobiles to develop databases to helps transportation organizations maintain costs, reduce maintenance, and improve road safety. All these changes will drive the growth for Automotive Navigation Systems in the European Market.
However, hindrances such as high cost of navigation, telecommunication, cybersecurity, and infrastructure connectivity can slow the growth rate. With increased fuel prices, low demand for self-driven cars over the past years, and the emergence of electric vehicles are some of the other factors hindering the growth. Nevertheless, GPS is an essential element in the future of Intelligent Transportation Systems (ITS) and shows positive growth.
The primary features of an automotive navigation system are integrating real-time data, map updates, and smartphone integration. With the growing accessibility to the internet through mobile phones, manufacturers are opting for all built-in functions of an in-vehicle GPS in the user's smartphone system itself while keeping the costs low.
The demand for navigation systems is growing, especially amongst ride-hailing apps, which are expected to push the market. GPS devices are primarily used by car fleets such as Uber and Grab to manage their cars' pool by keeping track of their driver's and passenger's activity. Both passive and active tracking is a viable source of information to the owner. Analysis of this stored data and real-time monitoring is very useful to the industry for commercial purposes.
Due to congestion on highways, transit systems, and streets, the estimated delays throughout the globe result in productivity loss, with billions of dollars getting wasted annually. Moreover, sectors such as e-commerce and logistics are heavily hit within remote places where navigation tracking is impossible. As a result, reliance on navigation systems with improving technology for locating various addressees in traffic on both highways and roadways to suggest different routes based on real-time traffic has become an essential feature of GPS based systems.
In 2019, the Europe Navigation Systems market had a market share of over 30%. Partnerships between OEMs and system manufacturers are taking place to develop better navigation infrastructure.
In Germany, security and safety play a significant contributing factor in the automotive market. As a result, Germany is planning to mandate the usage of GPS systems in all the cars manufacture after 2020. The European Telecommunications Standards Institute (ETSI) and European Committee for Standardization (CEN) have also issued standards for intelligent transport systems (ITS) to meet the safety demand in the EU region. As a result, new cars must be equipped with 3G/4G and GPS systems, creating a base for the car navigation systems.
Automakers and tier-1 suppliers have been consistently testing the strength of the navigation platform for better data-based solutions, to develop their digital services in areas, such as mobility management and navigation technology.
The Europe Automotive Navigation System market remains consolidated with already existing players over the past decade. The key players in the Europe Automotive Navigation System Market are Alpine Electronics, Aisin Aw Co.Ltd, Continental AG, Clarion, Pioneer, Mitsubishi Electric Corporation, Garmin and Denso Corporation. Although to have the edge over its competitors, the significant actuators manufacturing companies are making joint-ventures, partnerships to launch newer products.
For instance, Navigation service providers like TomTom and Robert Bosch have partnered together to offer real-time traffic data and map updates. In January 2018, Amazon partnered with the Garmin company to integrate Alexa's voice-assistant into its navigation systems functionalities.