Handset Navigation Users to Reach 70 Million in 2014

(Business News & Technology News, 13 Oct 2008)

The number of mobile subscribers downloading navigation routes using their mobile handsets is expected to grow from 16 million users in 2008 at a compound annual growth rate (CAGR) of 27.9 percent to reach 70 million users in 2014, according market research analyst firm Berg Insight. Revenues from subscriptions and advertisements are expected to reach Euro597 million by 2014 from Euro177 million in 2008, a CAGR of 22.4 percent.

The growing adoption will be driven mainly by the introduction of GPS-technology in smartphone handsets and bundling of navigation applications with mobile devices or service plans. Following the introduction of the first GPS enabled handset in Europe in 2007, there has been a massive increase in the number of models available from Nokia and other manufacturers. Increasing volumes have paved the way for widespread adoption of mobile navigation services in Europe.

Meanwhile, the US market has continued to grow to a level of 6 million active subscribers to mobile navigation services in Q2-2008. The anticipated launch of GPS enabled handsets by the GSM operators AT&T and T-Mobile USA are expected to drive further growth in 2009.

"The mobile industry is now starting to reap the benefits from the introduction of GPS enabled handsets. However, most mobile navigation users only use the service during a free trial period. The key challenge will be to convert these test-users into paying subscribers," sayd André Malm, telecom analyst, Berg Insight.

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