Market Size of Automotive Navigation System Industry
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| CAGR | 7.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Automotive Navigation System Market Analysis
The Automotive Navigation System Market was valued at USD 32.10 billion in 2021, and it is expected to reach USD 42.08 billion by 2027, registering a CAGR of 7% during the forecast period (2022-2027).
The Covid-19 pandemic had a negative impact on the market. With low vehicle sales reported in 2020, the major market potential for navigation systems was completely low. Also, with very few or almost zero vehicular movements, the aftermarket sector of the industry did not register many sales. However, with the expected increase in sales of passenger vehicles and increased awareness of safety in both passenger and commercial vehicles, the market is looking forward to reviving and growing economically back to pre-covid conditions.
Over the medium term, real-time traffic data, map updates, and smartphone integration have been a few primary features of an automotive navigation system that are likely to attract significant customer demand over the coming years. Further, technological advancements in the navigation system are expected to drive the demand for the navigation systems market during the forecast period. However, increasing cyber-security issues and the high cost of the navigation system are a few factors that are likely to hinder the growth of the market during the forecast period.
For instance, Amazon added a set of new auto-specific skills to the Alexa voice assistant in order to improve the overall experience while driving. One of the new skills is the ability to pay for gas simply by saying, “Alexa, pay for gas.” This feature can be used at over 11 000 Exxon and Mobil stations that have integrated the necessary technology.
Asia-Pacific is projected to become the key market for automotive navigation systems, with Japan, India, and China, being the major automotive manufacturing hubs during the forecast period. The demand across North America and Europe region is likely to increase due to the penetration of automobile MEMS sensors as it is one of the emerging applications and is being used in the electronic control units and tire pressure monitoring systems in the automotive navigation systems market.
