In September TomTom, the European leader of autonomous GPS navigation systems, launched their first connected PND devices (Personal Navigation Devices). When we say connected, this means that you have the possibility of exchanging data via the cellular network thanks to an integrated GPRS module so that you can have real time updates of different services.
While TomTom remains linked to automobile navigation, the maker has also announced a partnership with Renault so that their devices are installed in the cars, but this hasn’t stopped them fighting the increased power of GPS smartphones, with the interactive possibilities that they bring.
Already, Canalys, an analysis group, has highlighted that more mobile GPS units have been sold then PND’s in the third quarter of 2008. This tendency should continue throughout 2009, becoming more pronounced.
These devices have the advantage of being connected to the cellular network. To confront this competition, as well as deploying more value add services, the PND makers have no other choice then to make their products interactive.
Numerous directions are possible, like launching their own smartphone GPS, which is what Garmin has done with their Nuvifone, announced at the beginning of 2008 and which will be available in 2009, who have ceded part of their map development to be able to offer a connected PND which offers innovative services, like what TomTom has done with Tele Atlas.
The PND market is relatively young (it started in 2003), with it being one of the most dynamic generally public sectors these last few years, representing 20 million units sold in 2008.
According to Corinne Vigreux, co-founder of TomTom, the penetration rate of PND’s is only 25% in Europe and 15% in the United States (but this is rising quickly), which leaves a lot of room for growth. These numbers could approach 50% between now and 2012.
While the economical crisis is affecting all sectors, the sale of PND devices is still strong despite TomTom planning reduction revenue. Connected PND devices are an extension of these, linking hardware to a series of advanced services with the main talking point being HD Traffic.
At TomTom, we continue to believe that users prefer products that are dedicated, with an easy interface so that you can drive the car rather then a GPS smartphone where the interest is more aimed at pedestrians.
Analysts are already numerous anticipating a reduced PND market due to the power of GPS mobiles. Nokia is the pioneer in this regard, mixing GPS terminals and their associated services (Nokia Maps 2.0, localization services/blogging) without counting on the large mapping provider, Navteq.