PNDs in decline
Global sales of personal navigation devices (PNDs) decreased from 33 million in 2011 to 28 million in 2012.
A report from analysts Berg Insight explains that, athough part of the decline can be attributed to lower consumer spending in Europe due to the debt crisis, other developments are also affecting the PND market:
- the installed base of PNDs is already high, especially in mature markets
- retailers have reduced shelf space and marketing for PNDs in favour of higher margin products
- competition from other navigation solutions - notably navigation apps for smartphones - is growing
And PNDs will also start to face more competition from factory-installed navigation systems as more car manufacturers launch low-cost systems.
Sales of PNDs are still growing in markets such as Eastern Europe, South America and India - but not fast enough to compensate for the decline in mature markets. So Berg Insight forecast that global PND sales will decline to about 17 million units in 2017.
Berg add that the worldwide number of mobile phone subscribers using a turn-by-turn navigation app on their handset at least once per month grew from 105 million in 2011 to 150 million in 2012.
Details from Berg Insight below . .