Research: Aftermarket In-Vehicle Navigation Products Face Challenges

Vendors of aftermarket in-vehicle navigation systems are facing market challenges from such lower-cost consumer electronics products as GPS-enabled PDAs and wireless phones with Internet connectivity.

“For the occasional user, there is little reason to buy an aftermarket in-vehicle navigation system at this time,” says ABI Research analyst Dan Benjamin. “Soon, users will be able to access navigation services on their wireless phones on a pay-per-route basis. They could also use their PDAs with an add-on GPS kit for significantly less than a navigation system with similar functionality, and still have a PDA to use of other functions.”

ABI notes that there is still a “tremendous” niche market for premium services, and the vendors best positioned in the market are those that will be able to offer the most refined products with demonstrable benefits. These benefits could include “must-have” features like integrated real-time traffic data and such entertainment functions as satellite radio and DVD-video.