Global pure PND market to reach 23.2 Million units in 2007
Jul 31, 2007
According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, the scale of the global PND (Portable Navigation Device) market in 2007 is expected to reach 26 million units, up 43% in comparison with 2006.
Scale of the pure PND market is expected to reach 23.2 million units. In 2007 the PND market continues to develop strongly, mainly because of the fact that regular consumers' awareness of car navigation is increasing. Also, key vendors are launching value-line PND products, stimulating demand. In 2006, traffic information infrastructure in several regions matured significantly - such as RDS-TMC (Radio Data System - Traffic Message Channel) in Europe - and key vendors aggressively launched value-added services such as instant traffic information, weather information, and POI, which all contributed to increasing consumers' willingness to use PND products.
According to MIC industry analyst Lusy Ho, Taiwanese makers controla majority of production orders from brand-name PND vendors such as TomTom, Magellan, Medion, Mio, and Navman. Taiwanese PND production accounts for over 70% of worldwide production. In the first half of 2007, Taiwanese PND shipment volume reached approximately 7.28 million units. Inventory issues and the off-season effect affected shipment in the first quarter, as a result of which shipment volume only reached 3.08 million units. However, in the second quarter shipment volume started experiencing evident growth, and shipment volume in the second quarter reached 4.20 million units, up 36% in comparison with the first quarter. Due to the peak season in the end-market and the emergence of new makers, it is expected that Taiwanese makers' shipment will see even more pronounced growth in the second half of the year, with shipment volume expected to hit 11.83 million units. Shipment volume in the full-year 2007 is expected to reach 19.11 million units.
As the pure PDA market continues to gain steam, new entrants will be attracted to the market, increasing market competition. In such circumstances, brand-name PND vendors will actively try to add second or third outsourcing partners, in order to diversify supply sources and lower costs. Therefore, more Taiwanese, Chinese, and Korean makers will enter the industry, increasing competition among contract manufacturers.