GPS Market To Reach $14 Billion By 2005

While global positioning services have been available since the late 1970s, the technology will finally be used in a commercial market expected to be worth $14 billion by 2005, according to Allied Intelligence (ABI; Oyster Bay, NY). And although the U now dominates the GPS hardware/software market at 65%, offshore production of GPS equipment will account for half of the equipment by 2005.

In the US, ABI says GPS has largely been dominated by two user segments, which represent extremes in the technology's development. At one lie applications which require precise measurements like surveying and reference timing. At the other are consumer applications such as smart craft navigation systems and handhelds for outdoor enthusiasts.

To date, ABI says only in Japan has a mass market been identified and exploited: in-vehicle navigation systems (IVNS). But, the research agency say that is about to change. In the US, IVNS is moving from rental cars and luxury vehicles to mid-priced vehicles and will be an option for most domestic automobiles and trucks within a few years. In fact, ABI predicts IVNS applications o account for one-third of the world market for GPS by 2003

The cellular phone market will also drive growth in the GPS market. ABI says recent advances by microchip producers, such as SiRF Technologies (Santa Clara, CA), have reduced the size and power requirements of GPS receivers to a level where they can by incorporated into cellular/PCS phones.

Leading phone producers like Nokia and Ericsson have committed themselves to GPS in anticipation of the 2001 Federal Communications Commission (FCC) mandate that cellular/PCS networks have enhanced 911 (E-911) capabilities. The market is for hundreds of millions of phones over the net five years. This will drive the GPS communications applications to a more than 20 percent share by 2005.

ABI's report is now available. To obtain a copy, contact ABI at 516-624-3113.