GPS to fuel growth
The number of mobile subscribers downloading navigation routes using their mobile handsets is expected to grow from 16 million users in 2008 to reach 70 million users in 2014, according to a new research report by Berg Insight t. Revenues from subscriptions and advertisements are expected to reach €597 million by 2014 from €177 million in 2008, a CAGR of 22.4 percent.
The growing adoption will be driven mainly by the introduction of GPS-technology in smartphone handsets and bundling of navigation applications with mobile devices or service plans. Following the introduction of the first GPS enabled handset in Europe in 2007, there has been a massive increase in the number of models available from Nokia and other manufacturers. Increasing volumes have paved the way for widespread adoption of mobile navigation services in Europe. Meanwhile the US market has continued to grow to a level of 6 million active subscribers to mobile navigation services in Q2-2008. The anticipated launch of GPS enabled handsets by the GSM operators AT&T and T-Mobile USA are expected to drive further growth in 2009.
André Malm, telecom analyst, Berg Insight says, “The mobile industry is now starting to reap the benefits from the introduction of GPS enabled handsets. However, most mobile navigation users only use the service during a free trial period. The key challenge will be to convert these test-users into paying subscribers.”