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ANALYSIS: Car navigation systems set for ASEAN boom

By Dave Leggett | 17 September 2013

Increasingly sophisticated telematics systems will be spreading to Asia over the next 5 years

Increasingly sophisticated telematics systems will be spreading to Asia over the next 5 years

The analysts at Frost & Sullivan forecast that car navigation systems in three ASEAN countries - Indonesia, Malaysia and Thailand - will grow at a compound annual growth rate (CAGR) of 17.2% to reach 2.08m pa by 2018.

Firhan Nair, Consulting Analyst, Automotive Practice, Asia Pacific at Frost & Sullivan said that personal navigation devices (PNDs) are expected to dominate the ASEAN navigation systems market.

"However, the segment's share is expected to drop, as consumers are slowly shifting towards embedded type navigation systems due to convenience and aesthetics. The introduction of android phones and tablets that offer free navigational applications is also acting as a restraint for the overall navigation systems market," Nair said.

He added that OEMs are currently offering navigation systems for higher grade models within the vehicle line-ups, but not all brands offer such systems. He added that OE and dealer fitments only accounted for 7% of total navigation systems market in 2011.

Nair also said that luxury brands such as BMW and Mercedes-Benz have standardized their offering of navigation systems across majority vehicle line-ups. Other brands are beginning to recognise this as a unique selling feature, he added.

He also said that the aftermarket segment will remain the dominant segment of the navigation systems market due to lower costs.