Research Report: Smartphone Navigation Will Replace Traditional GPS

According to IHSiSuppli's research, the proportion of car navigation systems based on smartphones in 2011 will account for nearly 50% of the car navigation volume, replacing the previous dominant position of in-dash systems and portable navigation devices.

In this year's overall sales of car navigation devices, smart phone solutions will account for 49.6%, higher than 40.6% in 2010, more than double the 2009 share of 23.4%. By 2012, smart phone navigation will account for more than 50% of the unit sales of car navigation systems, much higher than other navigation solutions, and will firmly occupy the leading position in the following years, as shown in Figure 5.

The emergence of smart phones in the field of car navigation is related to their omnipotence. In terms of navigation, smart phones can download third-party navigation software, which is completely different from on-board systems that can only store navigation maps locally.

The ability to download navigation software also differentiates smartphones from ordinary mobile phones. In ordinary mobile phones, navigation software is pre-installed, and using other navigation functions may be subject to many restrictions. Unlike an ordinary mobile phone, since the smart phone has built-in multiple contacts and other sensors, the map can be reduced or enlarged by two fingers.

Therefore, IHSiSuppli's research shows that the unit sales of ordinary mobile phones in the field of car navigation will be lower than that of smartphones. The industry independently tracks the status of ordinary mobile phones.