Navigation System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Navigation System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Navigation Systems Market is expected to grow at a CAGR of 10.8% over the forecast period.

Key Highlights

• With the increasing demand for real-time information in various applications ranging from automotive to autonomous robots, navigation systems are increasingly widely adopted globally. With technological advancement, these systems have transformed and offered multiple services and navigation facilities, thereby creating a considerable service ecosystem around navigation technologies.
• Besides determining the location or direction of vehicles, they have many different uses. They help to know the weather alerts, track parcels and shipments, improve the traffic flow, etc. Also, these systems are used in several advanced applications to facilitate smart spaces.
• Various GPS systems find use in mining, aviation, surveying, agriculture, maritime, and military applications. Increased global trade and maritime traffic have aided the market's growth in recent years. Moreover, Governments around the world have made significant investments in navigation systems across a variety of industry verticals.
• For instance, in collaboration, the Indian Space Research Organization (ISRO) and the Airports Authority of India (AAI) implemented the GAGAN project as a Satellite-Based Augmentation System (SBAS), which is anticipated to benefit numerous stakeholders operating in Indian airspace.
• Similarly, many countries focus on bringing new technological innovations to navigation systems. For instance, in November 2021, India became the fourth country in the world to have its independent regional navigation satellite system recognized by the International Maritime Organization (IMO) as a part of the Worldwide Radio Navigation System (WWRNS).
• The recent COVID-19 pandemic has severely impacted the global navigation system business. New projects all around the world have come to a halt. As workers stayed home, worldwide factories struggled to integrate modern navigation systems, disrupting global supply chains. COVID-19's impact on this market is only temporary because only the production and supply chain is halted. Production, supply networks, and demand for navigation systems will steadily expand as the situation improves.
• The high expansion in the aviation industry and the high defence spending are expected to fuel the navigation system market growth during the projected period. However, expensive installation costs and safety regulations are impeding industry growth. Nonetheless, overcoming such impediments will focus on introducing new technology innovations.

Key Market TrendsDefense is Boosting the Market Growth

• One of the significant applications of navigation systems is the defence industry. Navigation systems allow users to detect, locate, and characterize interference sources. Military forces use satellite navigation for ground navigation, aerial monitoring, and maritime navigation.
• Navigation helps military missions accurately position their units, the enemy's forces, and the locations of the enemy's facilities or installations. Accuracy, reliability, precision in positioning, and timely measurements are some of the factors driving the growth of market adoption in the defence sector.
• Many companies provide a wide range of products to cater to the needs of various end-users. For instance, Safran offers a complete range of inertial navigation systems that equip over 50 types of land platforms throughout the world. The Geonyx inertial navigation and pointing system provides extreme shock resistance. The Geonyx is the most compact, robust, and reliable land inertial navigation and pointing system on the market.
• Owing to the increasing security concerns by the government of various countries, a navigation system has become an indispensable part of the defence sector. For instance, Britain is moving toward launching its satellite navigation system. The Conservative government of London recently announced that it has set aside GBP 92 million to undertake a feasibility test for designing and developing an alternative to the Galileo Satellite System.
• Britain took the step in response to the move by the European Union to remove Britain from the Galileo constellation following Brexit. Also, according to a recent October 2021, The People's Liberation Army of China has discontinued using its BeiDou navigation system. The PLA's move attempts to conceal its activities and border areas with India. This comes after the Indian Army dramatically increased its surveillance grid around its northern and eastern borders.

North America Expected to Hold Significant Share

• The North American region holds the majority share in the global navigation system market. The primary reason for North America to be the market leader can be the early adoption of technology in the region and immense investment into advanced navigation systems. Also, increased spending on various automation technologies and building a smart infrastructure throughout the region is further expected to boost market growth.​
• The key factors driving the market are driving the increasing penetration of cellular network infrastructure and the integration of technologies for applications, such as Automatic Vehicle Location (AVL), tracking systems, and others. However, factors such as high cost, lack of awareness of GNSS technology, and signal connectivity hinder the market's growth.​
• The navigation system is mostly used in the defence sector. Tracking and positioning is a navigation system's primary application area, primarily used in the defence industry. Most of the defence industry's spending comes from the North American region, with the United States contributing the most.​
• In January 2020, the Federal Aviation Administration (FAA) in the United States announced a GPS Interference Testing program to carry out for a week to enhance systems against attacks.​
• The United States is the largest spender on national defense compared to countries like China, Saudi Arabia, India, France, Russia, the United Kingdom, Germany, etc. Defense spending accounts for 15% of all federal spending and roughly half of the discretionary spending.

Competitive Landscape

The competitive rivalry in the navigation systems market is high owing to some key players like Garmin Ltd, Honeywell International Inc., Collins Aerospace Inc., Safran Electronics & Defense Inc., and many more. Their ability to continually innovate their products through significant research and development investments has helped them achieve a competitive advantage over other players. Some of the key developments in the market are:

• January 2022 - African countries have joined part of the satellite-based augmentation system (SBAS) because of ASECNA (Agency for Aerial Navigation Safety in Africa and Madagascar) efforts. SBAS is a precise and robust Global Navigation Satellite System (GNSS) system that eliminates the need for regional ground-based navigation aids and airport landing systems. Africa aviation, led by ASECNA, is capable of developing its own SBAS system, which will assist the airlines or aviation stakeholders.
• September 2021 - Collins Aerospace announced the world’s first Military Underwater Navigation System with M-Code (MUNS-M), a handheld diver navigation system that provides the diver with precise position and includes secure anti-jamming capabilities during deep sea missions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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