GNSS Chip Market Overview
The GNSS chip market was valued at $3,309.0million in 2016, and it is forecasted to grow at 7.3% CAGR during 2017 -2023. APAC will be leading the GNSS chip market, witnessing the fastest CAGR of 7.8%, during the forecast period.
Growing focus of major consumer electronics manufacturers towards the introduction of new and innovative products necessitate real-time data for monitoring and recording specific locations by means of various devices such as smartphones, wearable devices, tablets, and several others. Consequently, the constant technological advancements in the consumer electronics sector and the increasing popularity of wearable devices in APAC are driving the growth of GNSS chip market in this region.
APAC GNSS CHIP MARKET, BY DEVICE, $M (2013 – 2023)
Underpinned by decreasing prices of smartphones and increasing procuring power across key regions, especially developing ones, the global installed base of GNSS chips continues to be significantly conquered by smartphones. Smartphones remain the most common platform to support location based services (LBS). Based on devices, smartphones contributed over 75% to the GNSS chip market in 2016. Its market is projected to reach $4,121.0 million by 2023, with a CAGR of 7.2% during the forecast period.
In terms of application, telematics applications are expected to lead the overall GNSS chip market in terms of growth during the forecast period. The major factors bolstering the demand of such chips in telematics include surging demand for integrated wireless communication systems within the vehicle, introduction of autonomous vehicles and transformation of non-connected cars into connected cars.
GNSS Chip Market –Dynamics
Some of the key factors driving the growth of the GNSS chip market include growing popularity of augmented reality, high penetration of consumer electronic devices, surging demand for precise real-time data and growing focus towards the development of smart cities.
The concept of AR is expected to gain momentum in the market in the coming years. Demand for augmented reality is expected to grow at a rapid pace with increasing demand for AR devices and applications in various sectors, including medical, retail, ecommerce and architecture, globally. Augmented reality (AR) refers to a technology that integrates machine generated digital information with the user’s environment in real time.
GNSS offers a globally accessible basis of georeferenced information to carry out augmented reality. It plays a supportive role in augmented reality by allowing the formation of direct link between surrounding reality and the digital objects projected through augmented reality. Owing to that, it is being considered as key enabler for future AR projects, across various application segments. Consequently, growing popularity of AR is likely to spur the growth of GNSS chip market, during the forecast period.
AR is already playing a significant role in road by offering navigation assistance directly, without making the use of additional screen of In-Vehicle Systems (IVS) or portable navigation devices (PND). In addition, in LBS segment, the technology is expected to play a significant role in a range of entertaining applications, such as the finding of cultural inheritance. On the other hand, in the surveying application segment, AR is likely to contribute significantly in construction and maintenance activities. All this again, is likely to enhance the demand of these chipsets across various application segments.
Some of the major trends observed in the GNSS chip market include increasing dependence of IoT on GNSS for position and timing information, escalating the use of GNSS as an essential data source for big data processing, miniaturization of devices, and emergence of mHealth.
These chips are being used as an essential data source for big data processing. Big data refers to the assortment of large volume of data produced by numerous sources, including geography, weather, research, transport, and energy consumption. Complex systems are being created for big data processing on account of increasing data volumes across the globe and the inability of traditional data processing to deal with the skyrocketing volumes of data.
GNSS is becoming an important data source for big data processing to offer location and timing information. The explosion of GNSS devices is enhancing the quantity of location and timing data for big data business. LBS, road, timing & synchronization have been observed as the biggest value application categories of big data processing of these chips.
For instance, in LBS segment, GNSS-enabled position data produces excessive volumes of georeferenced data from portable devices. Similarly, it also helps in traffic management through collecting the floating car data (FCD), which is the information about the number of cars running on the road. In the timing & synchronization segment, GNSS serves as an essential data source of timing information across widely dispersed areas that necessitate high-performance real-time data processing skills.
The massive unexplored applications of UAVs across military and civil application areas create ample opportunities for major vendors operating in GNSS chip market to exploit the potential application areas. Unmanned aerial vehicle, commonly known as drone, refers to an aircraft without human pilot. The massive unexplored applications of UAVs across military and civil application areas create ample opportunities for major vendors.
GNSS Chip Market - Competitive Landscape
The GNSS chip industry is fairly fragmented with both international and local chip manufacturers each sharing small market shares in the total sales. Some of the key companies among the international vendors includes Qualcomm Incorporated, Broadcom Limited, Intel Corporation, Furuno Electric Co., Ltd., Skyworks Solutions, Inc., Quectel Wireless Solutions Co., Ltd., Navika Electronics, NXP Semiconductors, MediaTek Inc. and U-blox.