Market Size of Automotive Navigation System Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 35.89 Billion |
Market Size (2029) | USD 51.89 Billion |
CAGR (2024 - 2029) | 7.65 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Europe |
Major Players*Disclaimer: Major Players sorted in no particular order |
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.
By Vehicle Type | |
Passenger Cars | |
Commercial Vehicles |
By Sales Channel | |
Original Equipment Manufacturers (OEMs) | |
Aftermarket |
By Screen Size | |
Less than 6 Inches | |
6-10 Inches | |
More than 10 Inches |
By Geography | |||||||
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Automotive Navigation System Market Size Summary
The automotive navigation system market is poised for significant growth over the forecast period, driven by the increasing integration of real-time traffic data, map updates, and smartphone connectivity. The rapid advancements in autonomous and connected vehicle technologies are expected to further boost demand, as these systems rely heavily on real-time information. However, challenges such as cybersecurity concerns and the high cost of navigation systems may impede market expansion. The growing preference for private transportation and the expanding logistics industry are contributing to the increased adoption of navigation systems in both passenger and commercial vehicles. This trend is particularly evident in commercial vehicles, where efficient route planning is crucial for reducing travel time and enhancing operational efficiency.
Regionally, Asia-Pacific is anticipated to emerge as a key market, with Japan, India, and China leading as major automotive manufacturing hubs. The demand in North America and Europe is also expected to rise, driven by the penetration of micro-electro-mechanical systems (MEMS) sensors in navigation systems. The aftermarket segment is projected to experience substantial growth, fueled by the increasing availability of navigation systems through e-commerce platforms and the growing preference for electric vehicles. In Europe, the emphasis on safety and connectivity is driving the adoption of navigation systems, with government regulations pushing for GPS integration in vehicles. The market is characterized by intense competition among international and regional players, who are focusing on integrating emerging technologies like AI and AR to enhance navigation system functionalities.
Automotive Navigation System Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Shifting Preference of Consumers to Avail Private Medium of Transportation
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1.2 Market Restraints
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1.2.1 High Purchase and Installation Costs
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value - USD)
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2.1 By Vehicle Type
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2.1.1 Passenger Cars
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2.1.2 Commercial Vehicles
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2.2 By Sales Channel
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2.2.1 Original Equipment Manufacturers (OEMs)
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2.2.2 Aftermarket
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2.3 By Screen Size
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2.3.1 Less than 6 Inches
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2.3.2 6-10 Inches
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2.3.3 More than 10 Inches
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2.4 By Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Rest of North America
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Italy
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2.4.2.5 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 India
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2.4.3.3 Japan
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2.4.3.4 South Korea
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2.4.3.5 Rest of Asia-Pacific
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2.4.4 Rest of the World
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2.4.4.1 South America
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2.4.4.2 Middle East and Africa
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Automotive Navigation System Market Size FAQs
How big is the Automotive Navigation System Market?
The Automotive Navigation System Market size is expected to reach USD 35.89 billion in 2024 and grow at a CAGR of 7.65% to reach USD 51.89 billion by 2029.
What is the current Automotive Navigation System Market size?
In 2024, the Automotive Navigation System Market size is expected to reach USD 35.89 billion.