Within the broad category of Connected Navigation are devices ABI Research has termed RTTW (Real-Time Two-Way ) Connected Navigation. Unlike other forms of connected navigation which can include wired connections and one-way data receivers, Real-Time Two-Way connectivity opens a new dimension of service possibilities for navigation devices.

Even more than other forms of navigation, RTTW Connected Navigation is expected to show tremendous growth in the next five years, according to a new research brief from ABI Research. Handset-based navigation, where the navigation processing is conducted off-board (not on the handset) is one form of RTTW connected navigation, and it will experience explosive growth. Off-board navigation will go from under half a million users worldwide at the end of 2006 to more than 70 million at the end of 2012, according to ABI Research forecasts. More than 62% of all navigation devices will feature RTTW connectivity by 2012, with nearly 170 million units shipping worldwide.

According to research director Mike Ippoliti, “The connected navigation market is currently very fluid, and there is a recognition that services are more important than devices as we move toward connected electronics and software as service business models. This means that connectivity (most often cellular, though possibly WiMAX) will become a great differentiator. But not all players have the capability to shift to an ‘applications and services’ model.”

One driver of this market is the falling cost of GPS chipsets and their increasing use in mobile handsets, which will be examined in an upcoming ABI Research study, “GPS-Enabled Mobile Devices.”

The merger and acquisition activity surrounding map data providers is one indication of the trend toward RTTW connected navigation. Dash Navigation is one of the current leaders in RTTW PNDs, with a planned device launch in early 2008. Even before their device is available in the stores, they are talking about being a service provider, not a device maker, with connectivity as a differentiator. TomTom has also leapt into a leading position with the One XL HD Traffic, a consumer navigation PND that includes a GSM radio and receives advanced real-time traffic data through that connection (but only in The Netherlands at this writing).

The new ABI research brief, “Connected Navigation Devices,” examines the developing marketplace and ecosystem for RTTW Connected Navigation, discussing some key players and potential future scenarios. It forms part of the firm’s Automotive Infotainment Research Service.

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