Today (October 15), the European GNSS Agency (GSA) published its third Market Report on future trends for the Global Navigation Satellite System (GNSS) market [pdf]. The report highlights a rapidly developing and complex market that already boasts a global installed base of over two billion GNSS devices. Further dynamic growth of the market is predicted, providing promising prospects for a multi-constellation GNSS including Europe’s Galileo system.
The third edition of the GSA GNSS Market Report provides a comprehensive source of knowledge and information on this dynamic global market. The report’s forecasts are key references for companies and organisations to build their market strategies in relation to GNSS.
Introducing the report GSA Executive Director Carlo des Dorides said: “The GNSS market is experiencing rapid development and, despite the recent economic slowdown, the global installed base of GNSS devices has now surpassed two billion units.”
This installed base is predicted to grow almost four-fold over the coming decade to seven million – almost one GNSS receiver for every person on the planet by 2022. Most of this growth will be driven in regions outside Europe and North America.
“The fact is that a multi-constellation GNSS, including the deployment of Galileo, is a reality,” continues Mr des Dorides. “And the prospects for the future are highly promising.”
Multi-constellation receivers are becoming more widely available on the market. Today more than 70% of models are SBAS (Satellite Based Augmentation System) capable and over 30% are ‘Galileo-ready’ well ahead of its full operational capability.
The third report is reflecting the dynamic and complex nature of the GNSS market. Following an executive summary the report presents analysis of key market segments: Location-based services, Road, Aviation, Maritime, Agriculture, Surveying, and, new for this report, Rail.
Each market segment is analysed in terms of shipments, revenues and installed base of receivers with division between key applications and regions in the world. A summary reference page with four graphs depicting key forecast market data until 2022 can be found at the end of each segment section.
Global GNSS-enabled markets are forecast to grow to approximately €250 billion per annum by 2022 and the core revenues (these attributable to GNSS functionality and service sirectly) are expected to reach over €100 billion in the same time.
The report indicates a growing GNSS market offering clear commercial opportunities in a complex technological landscape. This dynamic technological environment will demand constant innovation on the supply side.
Worldwide regulatory measures across a number of domains will promote the use of GNSS, for example in emergency location sharing or Search and Rescue services, which will further drive growth in Europe and North America over the next five to ten years.
New smartphone capabilities will dominate global GNSS revenues and with other integrated technologies they are entering into other market segments, not only Location-Based Services. For example, LBS devices increasingly support navigation and other services in Road, which is canibalising the share of personal navigation devices in the market.
On account of price competitiveness of smartphones with GNSS capability, their penetration is increasing rapidly in all the regions of the world.
Still Many Opportunities In Europe
In the EU-27 shipments of GNSS-enabled devices will grow from €218 million to more than €600 million per annum by 2022 while revenues are expected to more than double over the decade to €24 billion.
This growth indicates that even in the developed world the market remains far from saturated and there is a big market potential for the companies in Europe.
The EU-based companies have already strong positions in antenna manufacturing, automotive, rail, surveying, defence/public utilities, and telecoms. A GSA study found the EU share in global market volume in these fields to be between 27% and 45% in 2011.
The market report is jointly authored by the European Commission and GSA and was produced using the GSA’s systematic marketing monitoring and forecasting process.
The underlying market model utilises advanced forecasting techniques applied to a comprehensive range of input data, assumptions and scenarios to forecast the size of the GNSS market in the European Union, North America and Rest of the World. Assumptions are informed by expert opinions and model results are cross-checked against the most recent market research reports from independent sources, before being validated through an iterative consultation process with sector experts and stakeholders.