Communications and Technology Industry Research

In our ever-mobile society, it always helps to know where we are and where we are going; this is possible when we have access to real-time information delivered on-demand. The technology that makes this possible has trained us to move faster than ever before. As a result, the demand for Global Positioning System (GPS) devices has exploded.

 

According to a research report released by the Consumer Electronics Association (CEA), overall satisfaction among owners of such devices is high and consumer interest for the technology is quickly increasing.

 

The report, “GPS – Exploring Ownership and Interest,” revealed that the owner satisfaction rate is at 80 percent, strongly influenced by the ease of use and display quality of devices. Navigation assistance in a vehicle was the primary use of the technology in consumer devices.

 

"Convergence (News - Alert) has spread GPS across multiple product segments resulting in greater consumer awareness and budding adoption of the technology," said Steve Koenig, CEA's senior manager of industry analysis, in a statement. "The availability of new services like real-time traffic information will continue to drive this segment forward in the coming years."

 

Despite the popularity and satisfaction rate, GPS ownership is actually relatively small at 18 percent of online consumers. However, market research from CEA demonstrates growing consumer interest, with shipment revenues nearly tripling between 2005 and 2006. Approximately one-quarter of online consumers indicated that they plan to purchase a GPS devices within the next year, spending an average of $410, which could result in sales reaching $4.1 billion in 2007.

The study also revealed that 33 percent of future GPS buyers are interested in owning a cell phone with GPS/navigation capabilities to make navigation on-the-go even easier. Aside from using the technology for in-car navigation, owners of portable or hand-held GPS devices cited other uses for the technology.

 

Hiking was used by 18 percent of GPS device owners, while another 16 percent used it for walking; boating was used by 14 percent and another 7 percent used their GPS device for biking. Running and flying were also used at 6 percent and 4 percent respectively.

 

CEA administered the study via Internet Web form to an online national sample of 2,756 adults in December of 2006. CEA Market Research is a comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry.

The complete study is available free to CEA member companies. Non-members may purchase the study for $599 at http://www.ebrain.org/crs/crs_all.asp.

 

The results of this study indicate that there is significant opportunity for GPS manufacturers and marketers throughout multiple industries. The key will be to respond with products that include GPS capability in easy-to-use formats and devices that consumers already use – such as a cell phone – to speed adoption.

 

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