Market Trends of Navigation System Industry
Defense is Boosting the Market Growth
- One of the significant applications of navigation systems is the defense industry. Navigation systems allow users to detect, locate, and characterize interference sources. Military forces use satellite navigation for ground navigation, aerial monitoring, and maritime navigation.
- Navigation helps military missions accurately position their units, the enemy's forces, and the locations of the enemy's facilities or installations. Accuracy, reliability, precision in positioning, and timely measurements are some of the major factors driving the growth of market adoption in the defense sector.
- Many companies provide a wide range of products to cater to the needs of various end-users. For instance, in June 2022, Collins Aerospace introduced NavHub-200M, the first non-ITAR vehicular navigation system for the international market compatible with Military Code (M-Code) receiver technology. NavHub-200M provides Assured Positioning, Navigation, and Timing (APNT) capabilities while improving overall resistance to existing and emerging threats to Global Positioning Systems (GPS), such as spoofing and jamming.
- Similarly, in March 2023, Safran announced to offer a new product, NAVKITE, an integrated navigation and resilient timing solution combining a GEONYXTM-M and a VersaSync. This new product is a fully automated system based on a combination of the GeonyxTM-M navigation system and the VersaSynctime and frequency server that analyzes GNSS*/GPS signals and verifies their integrity.
- Owing to the increasing security concerns by the government of various countries, a navigation system has become an indispensable part of the defense sector. For instance, Britain is moving toward launching its satellite navigation system. The Conservative government of London recently announced that it has set aside GBP 92 million (~USD 115.3 million) to undertake a feasibility test for designing and developing an alternative to the Galileo Satellite System.
- Moreover, in September 2022, Raytheon Company Ltd. announced that it had been awarded a USD 583 million contract for US Army navigation to develop an updated version of a technology that provides soldiers with critical situational awareness and context on the battlefield. The technology will be mounted into various armored platforms, including Bradley Fighting Vehicles, Paladin artillery, and Abrams tanks, as well as lighter options, such as Strykers and Humvees.
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North America Expected to Hold Significant Share
- The North American region holds the majority share in the global navigation system market. The primary reason for North America to be the market leader can be the early adoption of technology in the region and immense investment into advanced navigation systems. Also, increased spending on various automation technologies and building a smart infrastructure throughout the region is further expected to boost market growth.
- The key factors driving the market are the increasing penetration of cellular network infrastructure and the integration of technologies for applications, such as Automatic Vehicle Location (AVL), tracking systems, etc. However, factors such as lack of awareness, high cost of GNSS technology, and signal connectivity hinder the market's growth.
- The navigation system is mostly used in the defense sector. Tracking and positioning is a navigation system's primary application area used in the defense industry. Most of the defense industry's spending comes from the North American region, with the United States contributing the most.
- In January 2023, L3Harris announced to delivery of the Navigation Technology Satellite-3 to the U.S. Air Force and the spacecraft. NTS-3 is an Air Force Research Laboratory-funded experiment that will transmit Positioning, Navigation, and Timing (PNT) signals from Earth's geostationary orbit. The goal is to demonstrate next-generation PNT technology for the U.S. military and provide an alternative to GPS.
- The United States is the largest spender on national defense compared to countries like China, Saudi Arabia, India, France, Russia, the United Kingdom, Germany, etc.
- Moreover, the navigation system market in North America will witness high growth owing to the rising production of autonomous and passenger vehicles. Passenger vehicles are equipped with dashboards or dashboard-mounted navigation systems. These factory-installed navigation systems are more accurate, have more features, and have better integration than smartphone navigation.
- Furthermore, with the growing need for accuracy, automotive navigation technology is helping supply chain tracking and forecasting by incorporating applications that provide real-time delivery systems. Moreover, Ola, Uber, and Grab are expected to drive market growth as car-sharing services rely heavily on navigation-based technology.
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