Automotive Navigation System Market Size (2024 - 2029)

Automotive Navigation System Market Analysis

The Automotive Navigation System Market size is estimated at USD 35.89 billion in 2024, and is expected to reach USD 51.89 billion by 2029, growing at a CAGR of 7.65% during the forecast period (2024-2029).

Over the coming years, the integration of real-time traffic data, map updates, and smartphone usage in automotive navigation systems will serve as major factors for attracting significant customer demand. Further, rapid enhancement in autonomous vehicles and connected vehicle technology is expected to fuel the demand for advanced automotive navigation systems as they heavily rely on real-time information concerning other vehicles on the road. However, increasing cybersecurity issues and the high cost of navigation systems are a few factors that are likely to hinder the market's growth during the forecast period.

Moreover, consumers' shifting preference toward availing private transportation mediums and the expanding logistics industry worldwide are contributing to the growth of the passenger and commercial vehicle segments, which, in turn, positively impacts the penetration of automotive navigation systems. Commercial vehicles are required to travel for a longer duration for cargo and passenger transportation purposes, and therefore, the drivers of these vehicles require swift knowledge of the faster routes to reduce travel downtime. Such factors are expected to impact the growth of the automotive navigation system market.

• According to the International Organization of Motor Vehicle Manufacturers (OICA), new passenger vehicle sales worldwide touched 57.4 million units in 2022 compared to 56.4 million units in 2021, representing a Y-o-Y growth of 1.9%.

• Similarly, new light commercial vehicle sales touched 19.8 million units in 2022 compared to 18.6 million units in 2021 worldwide, recording a substantial Y-o-Y growth of 7%.

Asia-Pacific is projected to emerge as the key regional market for automotive navigation systems, with Japan, India, and China developing as major automotive manufacturing hubs during the forecast period. The demand across North American and European countries is likely to increase due to the penetration of automobile micro-electro-mechanical systems (MEMS) sensors. These sensors are among the most prominent emerging applications and are increasingly being used in electronic control units and tire pressure monitoring systems in the automotive navigation systems market.

Automotive Navigation System Industry Segmentation

An automotive navigation system refers to a part of the automobile controls or a third-party add-on used to find directions while driving an automobile. Automobile navigation can rely on GPS (Global Positioning System), or it can be DVD- or data-based.

The automotive navigation system market is segmented by vehicle type, sales channel, screen size, and geography. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By sales channel, the market is segmented into original equipment manufacturers (OEMs) and aftermarket. By screen size, the market is segmented into less than 6 inches, 6-10 inches, and more than 10 inches. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.

The report offers market size and forecasts for the automotive navigation system market in value (USD) for all the above segments.