The Global GPS Chip market, which has attracted many semiconductor players in the last few years is presently undergoing a rapid transformation. The demand for multi functional capability of mobile devices has prompted the GPS Chip manufacturers to develop multi functional chips. This, in turn, integrates GPS with other wireless technologies (such as Bluetooth and Wi-Fi). Further, the demand for navigation and Location Based Services (LBS) are driving the GPS industry, thus, driving the growth of the GPS Chip market. This is evident from the huge growth visible in the Personal Navigation Devices (PNDs) and GPS enabled mobile phones market. Despite the rapid growth, the declining price point of the GPS Chip is putting pressure on the profitability of many vendors. Moreover, in line with the semiconductor industry, the GPS Chip prices are falling around 20 percent, year on year. Market wide price decline, coupled with severe competition is leading to commoditization , resulting in a number of mergers and acquisitions. In addition, the aging GPS infrastructure, current economic downturn and privacy concerns are a few factors that could affect the growth of the GPS Chip market. Further, full operationalization of an alternate satellite based navigation system (such as GLOSSAN and GALILEO) could inhibit the growth of GPS industry, thus, affecting the GPS Chip market.
Rapid technological innovation, consumer demand and severe competition are a few factors forcing the manufacturers to develop Chip that can be integrated with other functions and technologies such as GPS, Bluetooth and Wi-Fi. For example, in 2008, CSR launched BlueCore7, the first solution from the company integrating Bluetooth, GPS and FM on a single chip. Further, other chip manufacturers are also in the process of launching different products that integrate GPS with other functions.
The report by TechNavio Insights forecasts the size of the Global GPS Chip market over the period 2009-2013. It segments the market into three geographic regions: Americas, APAC and EMEA, representing the market size and forecast for each of these regions. Further, it discusses the key market trends, drivers & challenges of the Global GPS Chip market, and profiles some of the key vendors.