Personal Navigation Device (PND) Market in Japan and South Korea

Abstract

Personal Navigation Device (PND) is a car navigation system with a 5-inch or smaller display. The device is removable and portable and can be used outside the car as it usually includes a memory and battery. The price is much more affordable compared to the so called before-market in-vehicle navigation system, and leads the expansion of the car navigation systems worldwide. PND is also called as ' Portable Navigation Device' due to its portability.

Recently the demand for PND has been increasing especially in the European market, which fuels the growth of the navigation market. Even in the U.S. and BRIC countries where navigation systems have been adopted slowly, the demand for car navigation systems is on the rise. TomTom, Garmin International and MiTac International are leading this trend. It is reported that the combined market share of TomTom and Garmin International has exceeded 60%.

Japan, which has been referred as “the pioneer” of car navigation shows a different progress that is far from the world trend. Until the recent present, the main trend was high-end navigation system with AV function. Therefore, in general “a navigation system” in Japan meant an in-vehicle navigation system with a 7-inchdisplay that uses HDD, CD-ROM and DVD-ROM as a media for map data and navigation software. The price ranges from 100,000 to 200,000 yen.

However, a new trend is emerging in the Japanese market. PND products have been introduced successfully and the market seems to be expanding. Sanyo' s Mini GORILLA made a hit in 2006, and other manufacturers such as Clarion and Sony launched their PND products in 2007.

ROA Group estimates that the number of PNDs will increase to 1.87 million by 2010 and the total number of navigation devices in the Japanese market will reach 7.49 million units by 2010.

Contrary to the Japanese market, South Korea has been developing as an after-market, with a wider adoption of removable PNDs. And the first vendors who introduced PNDs in Japan were South Korean companies such as Hyundai Autonet and Mio Technology.

The recent trends in South Korea show a change toward the opposite direction compared to Japan. In 2006 there were many models with a 4.3-inch LCD, but nowadays most models adopt a 7-inch LCD as users increasingly prefer larger LCDs. Accordingly, their interest in in-vehicle navigation is also increasing.

This report analyses the markets of Japan and South Korea, the two most notable countries in the PND and navigation system market, and provides valuable information for benchmarking, market entry and business partner search.

This report is useful for the manufacturers of PND and navigation systems, as well as navigation software developers, navigation- related content providers, car manufacturers and suppliers. In addition, the report includes useful information for investors, industry analysts and researchers who are interested in the development of navigation market in Asia.

Japan is the most advanced country in navigation system technologies. In South Korea, there are approximately 100 navigation system manufacturers and the competition is fierce. It is a market for high-potential players where innovative ideas constantly appear.

For the report, ROA Group has collected data and information on PND and navigation system manufacturers in Japan and South Korea, including press releases, news articles and market reports. Some information on this report is based on interviews with professionals in PND and navigation system industry, as well as information sources in ROA Group' s own database.