Analysing the commoditisation of navigation software and its impact on PND suppliers and vehicle manufacturers...

Although the introduction of free navigation on smartphones will have a negative short-term impact on companies that are currently selling navigation systems, in the long-term SBD believes that it will act as a trigger to accelerate innovation within both the PND and automotive industries. SBD combines research on consumer attitudes and sales forecasts to produce this market and strategy-focused report. It contains practical advice that will help vehicle manufacturers and those in the navigation industry diversify and adapt to the challenges posed by smartphones in the European and USA markets.

• Understand how Nokia and Google are using navigation to increase the appeal of their handsets and software platforms
• Determine the future size and revenue potential of different segments within the navigation market
• Characterise the risks posed by commoditised navigation and its impact on your business
• Develop new product and business strategies to remain competitive against free navigation software
• This report analyses the gradual commoditisation of navigation software as smartphone suppliers increasingly fit it as standard in order to increase the appeal of their handsets and services. In addition to forecasting the impact on sales of other paid-for navigation systems, this report also identifies the key strategic changes that vehicle manufacturers and PND suppliers will need to make in order to adapt and survive in the new navigation market.

• 1.1 Introduction
• 1.2 Summary of conclusions

• 2.1 Introduction
• 2.2 Market drivers for navigation on smartphones
• 2.3 Google Navigation
• 2.4 Nokia OviMaps
• 2.5 Other handset suppliers
• 2.6 Forecasting the growth of standard-fit navigation on smartphones

• 3.1 Introduction
• 3.2 Consumer attitudes towards PND vs. smartphone navigation
• 3.3 Impact of free navigation on PND strategies
  • 3.3.1 PND suppliers that are most at risk of market downsizing
  • 3.3.2 Diversifying the form factor and sales channels
  • 3.3.3 Innovating to avoid price decline
• 3.4 Impact of free navigation on PND sales and revenue forecasts

• 4.1 Introduction
• 4.2 Consumer attitudes towards OE vs. smartphone navigation
• 4.3 Impact of free navigation on automotive strategies
  • 4.3.1 Reducing costs through new partnerships
  • 4.3.2 Adapting business models
  • 4.3.3 Enabling the integration of smartphone navigation
• 4.4 Impact of free navigation on OE sales and revenue forecasts

• 5.1 Introduction
• 5.2 Smartphone navigation forecasts
  • 5.2.1 Sales of smartphones with standard-fit navigation
  • 5.2.2 Proportion of smartphones with standard- fit navigation
• 5.3 PND forecasts
  • 5.3.1 Sales of PNDs
  • 5.3.2 Sales of other products by PND suppliers
  • 5.3.3 Revenues from PNDs and related products/services
• 5.4 OE navigation forecasts
  • 5.4.1 Sales of OE navigation systems
  • 5.4.2 Revenues of OE navigation systems

• Fig. 1: Forecast for navigation sales in US and EU (2010 -2014)
• Fig. 2: Overview of threats and opportunities for navigation market
• Fig. 3: Google business model for offering free navigation
• Fig. 4: Strengths and weaknesses of Google navigation
• Fig. 5: Strengths and weaknesses of Nokia navigation
• Fig. 6: Forecast of standard-fit navigation on smartphones (2010-2014)
• Fig. 7: Usage frequency of PND vs. Smartphone navigation (EU 2009)
• Fig. 8: Most important features for PND vs Smartphone users (EU 2009)
• Fig. 9: New PND strategies for a new market dynamic
• Fig. 10: Profile of vulnerable PND suppliers in Europe and USA
• Fig. 11: Impact of smartphone integration on PND competitive advantage
• Fig. 12: Potential areas of innovation for PND suppliers
• Fig. 13: EU & USA unit sales forecast for PND suppliers (2010-2014)
• Fig. 14: EU & USA revenue forecast for PND suppliers (2010-2014)
• Fig. 15: Likelihood of smartphone navigation owners buying embedded systems (EU)
• Fig. 16: Strategies for enabling standard-fit navigation in cars
• Fig. 17: Example of potential in-car Google navigation solution
• Fig. 18: Low-cost integration with smartphone navigation
• Fig. 19: EU & USA sales forecast for OE navigation (2010 -2014)
• Fig. 20: EU & USA revenue forecast for OE navigation (2010-2014)