DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c88147) has announced the
addition of "China Car Navigation Industry Report, 2006-2008" to their
offering.
With the number of cars in China exceeding 40 million units and
the application prospect of car navigation products becoming clearer
and broader, the competition in China car navigation industry becomes
fiercer. GPS equipment manufacturers, navigation software and map
manufacturers, navigation operators, and chip manufacturers both in
China and foreign countries are vigorously developing their own
technology advantages and integrating their upstream and downstream
industry chain, so as to expand their market shares and seize market
opportunities.
During 2006-2007, GPS equipments and navigation system software &
map manufacturers started a tide of merger, acquisition and
integration. Several new trends are shown in the integration tide:
1. GPS solutions and wireless communication will further integrate
In the future, in-vehicle GPS will be further integrated with
communication technology and navigation function will be combined with
traffic information broadcast, speed alarm, etc functions. In
addition, in-vehicle GPS also will be further combined with weather,
shopping, fault diagnosis and fault forecast, etc. Digital Cyclone
Inc, acquired by Garmin as shown in the above table, is a local
communication service supplier that provides weather forecast of
detailed regions.
2. Integrating the upstream and downstream industry chain is the
development direction of navigation manufacturers
The value chain of the navigation industry includes navigation
e-map manufacturers, GPS chip & module providers, navigation software
enterprises, navigation equipment manufacturers, etc many links. The
manufacturers of various links all are vigorously integrating their
own upstream and downstream production chain. They hope to improve the
competitiveness through shortening the industry chain. Tele Atlas
acquiring TomTom as shown in the above table is a case of the
navigation manufacturer integrating the upstream e-map publisher.
Through this acquisition, TomTom perfected its industrial chain and
restricted its competitors to some extent.
3. The market share will be further expanded and the industrial
concentration will be further enhanced through merger and acquisition
For many companies, it is an important means to acquire other
companies in its industry for realizing leap-forward development.
Merger and acquisition could enable the company's technology ability
to become stronger in short term and make its market share expand
rapidly. For example, as shown in the above table, through acquiring
Navman, MIO's competitive advantages in wireless communication GPS
navigation products accelerated to be strengthened, its global market
share ranked the third, and its share in European market also expanded
rapidly, rising to the second place. In 2006, the top three companies
in respect of market share, TomTom, Garmin and MIO, accumulatively
occupied 70% more shares of the global navigation equipment market.
The market concentration was further improved.
It seems that many acquisition and merger cases have not directly
influenced China in-vehicle navigation market, yet, it is not true.
After acquiring Gate5, Nokia launched N95 navigation handsets equipped
with Smart2go produced by Gate5. TOMTOM also has wanted to enter
Mainland China a long time before. It entered Taiwan market in 2006.
After acquiring Tele Atlas, it could enter Mainland China market
through the wholly owned subsidiary of Tele Atlas, Shanghai Changyu.
The industrial integration of these international giants is more or
less influencing China in-vehicle navigation and handheld navigation
market with huge potentials. China local navigation manufacturers will
face fiercer competition.
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Companies Mentioned:
-Shenzhen Electronics Group
-China Satcom
-Gugao
-Huaqiang
-Tongyong
-BKSINCERE
-Shenzhen JieYuan Network Communication Co., Ltd
-Clarion
-Topcon
-Alpine
-Denso
-Kenwood
-Sony
-Fujitsu
-Pioneer
-Panasonic
-Aisin AW
-GARMIN
-THALES Navgation
-NovAtel
-Leica Geosystems
-Siemens VDO
-Blaupunkt
-CSI
-Trimble
-DDS
-Shenzhen Seg Scientific Navigations Co., Ltd
-UniStrong
-GPS Tech
-Secugis
-JJTech
-oLinkStar
-Xi'an HuaXun
-SirF
-STMicroelectronics
-CEVA
-Maxim
-ATMEL
-SIGE
-Xemics
-NemeriX
-RFMicroDevices, Inc. (RFMD)
-Ublox
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For more information, visit
http://www.researchandmarkets.com/reports/c88147
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
Fax: +353 1 4100 980
Copyright Business Wire 2008
