2009 GPS market to be up over 25% despite poor semiconductor outlook

Although the 2009 outlook for many semiconductor manufacturers is worsening by the day – with share prices have taken a severe hit with millions shaved from companies' market capital over the last 12 months – IMS Research is projecting that the GPS market represents one of the few areas of growth in 2009.
 
In the new report, "WW Market for GPS/GNSS in Portable Devices", the GPS market is forecast to increase by over $200 million between 2008 and 2009. IMS Research Analyst, Tom Arran, states "2008 was the breakout year for GPS in mobile phones. In 2009 GPS will begin to penetrate into a range of vertical markets, such as cameras, laptops, UMPCs, sporting equipment and first responder radios. This will help to drive shipment growth of over 25% YoY". 
 
"OEMs in these markets can use GPS to differentiate their product, while also drive new service revenue streams. Furthermore, location is emerging as a key component of future offerings from companies such as Google, Microsoft, Apple, Nokia, Intel, Mozilla and Ericsson. This will enable a host of new services across all key vertical markets, which in turn will further drive the uptake of GPS".
 
Despite a significant increase in revenue in 2009, IMS Research believes that the best is yet to come. Arran goes on to say "2009 will not be booming year for GPS in portable devices. Looking beyond the current economic turbulence, IMS Research is forecasting the overall market for GPS to demonstrate a 21.2% CAGR between 2008 and 2013.
 
 "There is still a lot of untapped potential and the GPS market needs to mature before breaking the 500 million units per year barrier. One of the more general issues is poor performance in challenging environments. GPS manufacturers need to start seriously considering hybrid location in their offering. The report forecasts the uptake of WLAN location in each of these markets, both as a competitive and complementary technology."
 
"The GPS market remains competitive, despite a number of acquisitions by large semis companies. Standalone GPS manufacturers will need to specialise to monetise, as each vertical market requires different hardware considerations. By developing a diverse portfolio of solutions tailored to specific markets, they can spread risk across a number of OEMs in different vertical markets – ideal in troublesome times".