Global Navigation Satellite System Chip Market size is anticipated to record notable growth through 2027 owing to the rising demand for 4G and 5G network coverage and high-speed internet. Moreover, these chips can direct drivers correctly and provide them real time data related to the real-time status of the vehicle.
Navigation systems are being largely deployed in vehicles for displaying moving maps, offering information about speed, location, direction, and nearby streets, and points of interest, and tracking purposes, amongst others.
The GNSS chip market is being largely attributed to the rising volume of consumer electronics that are being equipped with navigation and positioning features. Besides, increasing penetration and sales of wearable devices across various global economies would further propel the demand for GNSS chips. This is expected to provide major impetus to the industry.
However, high cost of initial investment in the agricultural industry is predicted to inhibit the growth of market. The agriculture sector incorporates GNSS systems in applications like monitoring automatic steering-wheel movement and tractor guidance, which would help them in fostering agriculture production. Farmers have to bear the increased costs of devices and equipment for precision faming as an initial investment, thus impeding the market progression.
Smartphones segment is projected to capture significant share in the overall market. Most of the smartphones today have navigation applications integrated into them. These are being extensively used by drivers to know their current location as well as location of their destination. In most cases, these chips support all publicly available satellite networks like Galileo, GPS, and GLONASS. Additionally, the EU has approved a regulation necessitating new smartphones being launched in the market to incorporate Wi-Fi and satellite location services. As per the regulation, chipsets enabled with GNSS capabilities are likely to access the EU’s satellite system Galileo, to offer accurate positioning and timing information.
GNSS chips are poised to have major use in location-based services. Elevating use of mobile augmented reality in sectors like retail and e-commerce, entertainment, and gaming is fueling the growth of the market for location-based services.
North America GNSS chips market would record stellar growth through 2027 as the region stands out to be the second-largest market for tablets and smartphones and in-vehicle navigation systems. The region is also considered to be the largest producer of aircrafts and leading manufacturer of maritime and aerospace navigation products, complementing the growth of market.
Market is highly consolidated and boasts of the presence of leading market players like Honeywell International Inc., Broadcom Inc., Leica Geosystems (Leica Geosystems Holdings AG), and Spirent Communications plc, amongst others. These market vendors have been relentlessly working towards the development of novel products. Besides, these players have also been engaged in strategic initiatives including partnerships, acquisitions, and mergers to gain a competitive edge in the global market.
The worldwide outbreak of COVID-19 pandemic has had a severe impact on market since 2020. This can be attributed to the increasing shortage of chips in the semiconductor industry and declining sales of automobile worldwide. Stringent movement restrictions and lockdown policies in wake of the increasing COVID cases would impede the market growth through the coming years.
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