While original equipment manufacturer (OEM)-embedded navigation is becoming a standard fitting on premium automobile models, the mass-market segment has relied on smartphone interfacing technologies such as Apple CarPlay and Android Auto.
Based on Frost & Sullivan’s recent analysis, Global Automotive Navigation System Market, Forecast to 2025, embedded and mobile-based navigation will continue to co-exist. But OEMs are looking to form strategic partnerships with technology companies to make embedded systems even smarter.
“OEMs have been focusing on incorporating built-in virtual assistants powered by Artificial Intelligence (AI) and natural language programming (NLP) to add more functionalities to the intelligent in-vehicle infotainment (IVI) system,” said Anubhav Grover, Mobility Research Analyst at Frost & Sullivan.
Tier-1 manufacturers have begun to partner with tech companies, leveraging Internet of Things (IoT) applications to integrate connected services data with navigation and location-based services. Integrating more human-machine interface (HMI) solutions could help reduce driver distraction.
Other goals of these partnerships include merging real-time information with artificial intelligence and deep learning to provide personalized and contextual information, generating new revenue through a digital experience, and offering bundled services through the Data-as-a-Service business model using in-car payment methods linked to mobile wallets and other e-payment services.
New navigation and infotainment systems will be able to cover a wide range of vehicle models with more economically feasible systems, focusing on products that deliver value in terms of cost of ownership rather than feature-rich premium products.
The Frost & Sullivan analysis covers key market drivers, restraints, and trends, as well as recent developments in the navigation system market, as well as the popularity of different types of car interfaces.
“While North America will continue to lead the adoption of navigation solutions, the higher penetration of Long-Term Evolution (LTE) and massive production capacity in China are positioning Asia-Pacific as the next big region for OEMs,” Grover said.
Source: https://www.prnewswire.com/news-releases/oems-invest-in-real-time-contextual-navigation-services-to-catalyse-future-growth-300808539.html
