According to IHS Automotive, one in four U.S. cars now comes with a navigation system. Globally, installations of dashboard navigation systems are estimated to reach 13.8 million by the end of 2013. Typically, automakers charge between $500 to more than $2,000 for these systems. Even standalone GPS systems tend to cost hundreds of dollars. In addition to high cost, these systems come preloaded with maps and are not connected to the internet, thereby making them more difficult to update. In some cases, a trip to the dealership is necessary.

In contrast, smartphone and tablet map apps are internet-connected, easy to update, often give real-time traffic information and in some cases can be downloaded for free. In 2012, 47% of car owners said that they used a smartphone map app while driving, up from 37% in 2011. Makers of dashboard navigation systems have taken notice. General Motors’ OnStar, Garmin, and TomTom all have created map apps of their own, ranging in price from $36 to $150. In some cases, these apps run both on mobile devices and on a car’s dashboard.

Today’s market size is the number of map app downloads in the U.S. in May 2013, an 11% increase from the total downloaded in May 2012.

Geographic reference: United States
Year: May 2013
Market size: 79.1 million
Source: Keith Naughton, “OnStar, Garmin Try to Keep Pace with Waze, Other Free Navigation Apps,” Bloomberg Businessweek, July 25, 2013, available online here.
Original source: ComScore
Posted on August 13, 2013