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The global navigation satellite system (GNSS) market size was valued at USD 161.27 billion in 2019 and is projected to reach USD 386.78 billion by 2027, exhibiting a CAGR of 12.83% during the forecast period.
Digitalization is a major source for technological advancement as it helps in the evolution and diversification of various location services and solutions, primarily fueling business outlook for a global navigation satellite system. The electronic industry is expanding at a rapid pace around the world owing to an increase in the adoption of smartphones projected to create lucrative opportunities for major mass market applications such as location, position, navigation, and timing. However, smartphones are the most popular electronic gadget compared to any other device in the world. According to bankmycell, the total number is projected to surpass 3.5 billion for smartphone users by 2020 across the globe. The shifting trend in an advanced smartphone is likely to be dependent on high-speed internet and faster network such as 5G infrastructure. The emergence of 5G technology and smartphone companies are focusing on improving internet speed by increasing performance and hardware capability by adding the multi-frequency benefits.
The major use of satellite navigation was introduced and designed for military applications to allow the precision target delivery to achieve the highest accuracy in crucial operations. These key developments are expected to stimulate demand for navigation-based devices in the forthcoming years.
Numerous Applications of GNSS to Augment Market Growth
GPS is a widely used navigation satellite system across the world as it provides accurate positioning information to commercial applications such as aviation, maritime, geometrics, rail, and military applications. Nowadays, precision agriculture is widely accepted due to different technologies and solutions that improve agriculture production, crop yield, and reduces environmental impact.
Navigation based devices are used in farm machinery guidance to help drivers reduce the risk of overlaps by following the optimal path with digital displays. It is also used in automatic steering and biomass monitoring. The variable-rate application includes positioning with data from sensors and maps for agrichemicals distribution. Navigation based devices have some other applications in agriculture, such as soil condition monitoring, forest management, virtual fencing, and livestock tracking, and others.
In the Aviation industry, the GNSS is used for performance-based navigation that provides safe and efficient, and reliable operation. Aircraft equipped with Emergency Locator Transmitters (ELT) that helps in search & rescue operation and surveillance. In a surveillance application, the aircraft is equipped with Automatic Dependent Surveillance-Broadcast (ADS-B) receivers for surveillance purposes. Pilots use maps for current aircraft location, and infringement alarms to warn them against any closed or restricted airspace. Pilots also carry PLBs (Personal Locator Beacons) equipped with navigation-based devices that help them in rescue missions
GNSS maritime applications include positioning and navigation. All cargo ships, passenger ships with high load carrying capacity are regulated and dependent on navigation based devices for navigation activities. Also, the system used for traffic management and surveillance with the use of Automatic Identification System (AIS) and long-range identification and tracking (LRIT) in inland water and sea. The system has some other applications such as search and rescue, fishing vessel control, port operations, and marine engineering. These factors are projected to fuel the market growth during the forecast period.
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Negative Impact on Market due to COVID-19 Pandemic
The worldwide outbreak of COVID-19 has created a large impact on human life and economic growth. This novel coronavirus has also affected the various market industries, either in positive or negative ways or both. All high growth regions have been witnessing a major impact on several industry operations, such as product manufacturing, new product supply, and raw material supply, among others. All high growth regions have been witnessing a major impact on several industry operations, such as product manufacturing, new product supply, and raw material supply, among others. A decline in smartphone sales is expected to hamper the growth of the market and restrict the adoption of consumer electronic devices.
The major players involved in the GNSS market, such as Qualcomm Technologies, Inc, are facing the ‘demand shock’ issue due to the COVID-19 pandemic. Qualcomm Technologies, Inc. has owned several contracts to develop fifth-generation smartphone devices. However, the company has estimated the low product demand in lockdown circumstances. Therefore, the key players are focusing on building new smart, resilient supply chain operations to resolve the ‘supply chock’ and ‘demand shock’ issue that occurred due to COVID -19. This new smart supply chain is expected an efficient operation from the very first phase of the supply chain phase to the product delivery phase.
Development in 5G Technologies to Create Significant Growth Opportunities
Consumer electronics devices such as smartphones, smart wearable, digital cameras, and tablets are widely used GNSS technology for mapping, geo-marketing, and navigation applications, among others. This has led to the increasing adoption of diverse location-based service (LBS) applications depending on the 4G network solution. A rise in the use of location-based services such as online food delivery, online cab services, and the online product delivery is projected to fuel the global navigation satellite system market in the coming years.
Besides, the emerging 5G network technology has increased the development of 5G enabled smartphones and other consumer electronic devices. In this upcoming 5G era, the development of advanced navigation based device chips for smartphones is also increased. The integration of advanced Navigation based components in consumer electronic devices will improve the current LBS application capabilities in terms of network speed, performance, and more accurate positioning information.
For instance, by 2025, according to the European Global Navigation Satellite System Agency, over 2.5 billion navigation based devices device units will be sold. This will be expected to create plenty of market opportunities for the GNSS market growth, soon.
The emergence of Driverless Technologies to Boost Market Growth
A fully automated vehicle requires the use of advanced navigation system technology to provide precise positioning solutions. The integration of global navigation satellite system (GNSS) receivers in the driverless car will provide an accurate location and time information. This real-time information is required to navigate a driverless car on the road and also to maintain its secure distance from other automotive vehicles. This technology enables the efficient and reliable operation of a driverless car. Therefore, the increasing development of such vehicles in developing economies such as China will create ample opportunities to support the growth of the navigation based devices market in the near future.
For instance, in 2019, Germany-based Daimler AG announced the technological collaboration with Bayerische Motoren Werke AG to work together on autonomous driving technology.
For instance, Audi AG, headquartered in Germany, has announced to invest USD 163 billion on self-driving and other associated technologies by 2023.
Growing Adoption Of Unmanned Vehicles/Autonomous Vehicles For Various Applications To Boost Market Growth
Over the past few years, the demand for unmanned robotic vehicles (URV) is increased across the world. This demand is mainly increasing due to enhanced capabilities of various industry verticals such as automotive, aviation, agriculture, maritime, military, and transportation & logistics.
The unmanned vehicles/autonomous vehicles, including unmanned aerial vehicles (UAV), autonomous underwater vehicles (AUV), and unmanned ground vehicle (UGV), require integration of navigation satellite system receivers to measure precise real-time positioning information. This information is crucial in several applications such as surveying, search and rescue, mapping, autonomous delivery, and military combat missions.
Moreover, the advanced GNSS/ INS receivers can allow an unmanned vehicle to perform effectively, even in a weak signal reception area. Therefore, the demand for Navigation based devices /INS integrated UAV is increased. These factors are expected to fuel the growth of the GNSS industry during the forecast period.
For instance, In 2019, Septentrio N.V., headquartered in Belgium, has introduced its latest Navigation based devices / Inertial navigation system receiver for UAVs.
Launch of Innovative and Advanced IoT Based Electronic Devices is Propelling Growth of the Market
The consumer electronic industry has witnessed a massive growth in developing economies such as India and China. This growth is attributed to the increased adoption of consumer electronic devices such as smartphones, tablets, tracking devices, and cameras, among others. These devices have an integrated Navigation based component that can enable the use of advanced navigation features. For instance, India Brand Equity Foundation (IBEF) has announced the Indian appliance and consumer electronics (ACE) market has valued generated revenue of USD 10.93 billion in 2019. Navigation based devices chip integrated smartphones are widely used for a variety of applications, including geo-marketing, mapping, gaming, navigation, and location-based services (LBS). Therefore, the growing adoption of consumer electronic devices has increased the demand for navigation-based devices, receivers, and chips. Moreover, developing technologies such as 5G, IoT, artificial intelligence (AI), and industrial automation are further increasing the development of advanced consumer electronic devices. These factors are expected to rise the demand for advanced navigation based solutions.
High Initial Cost Associated With GNSS Upstream Component Is Expected To Hamper Market Growth
The space infrastructure required a variety of components to deliver GNSS signals to the end-user. Therefore, to increase the availability of the satellite signal, more space infrastructure is needed, such as new satellites, advanced navigation based devices network stations, and associated components. However, a very high cost is needed to design a new space network station. These high initial investments associated with the GNSS upstream components are expected to hamper the market growth. Despite this, emerging technologies such as artificial intelligence, IoT, 5G, and industrial automation are expected to create lucrative opportunities to grow the market size in the near future.
Growing Need To Protect GNSS Signals From Cyber Attack Is Act As Major Challenge To The Market
The disputes among neighboring countries are increasing with rapid economic development. The constant disputes and growing geopolitical tension has changed the nature of war from physical to virtual. The cyberattack poses a major threat to space infrastructure systems such as GNSS station as it plays a vital role in the military applications system. Therefore, the protection of the global navigation satellite system signal from cyber threats such as spoofing and jamming is a major challenge to the market. This challenge can be overcome by using anti-jamming and anti-spoofing solutions that help to protect the satellite signals from cyber threats.
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High Demand for Satellite-Based Augmentations System to Grow Market at Faster Pace during 2020-2027
Based on type, the market includes global constellations, regional constellations, and satellite-based augmentations. The global constellation segment is estimated to hold a dominant share in the market up to 2027. The global constellations type segment includes the analysis of satellite constellations that provide the global coverage for navigation services such as Global Positioning System (GPS), Global Navigation Satellite System (GLONASS), and Galileo. GPS comprises a total of 33 satellites; among them, 31 satellites are present in orbit. The GLONASS consist of a total of 26 satellites, among them 24 are present in orbit. Moreover, the Galileo comprises a total of 30 satellites among them, 22 are present in orbit.
The regional constellations type segment includes the analysis of satellite constellations that provide the regional coverage for navigation services such as Navigation with Indian Constellation (NAVIC) and Quasi-Zenith Satellite System (QZSS). The NAVIC is a navigation satellite system that covers India and its surrounding area up to 1500 km. This navigation system is used to deliver precise real-time location and timings services. NAVIC constellation comprises a total of 7 satellites, and all are present in orbit. The QZSS regional constellation comprises a total of 4 satellites, and all are present in orbit.
Precision Agriculture Application Segment to Boost Market Growth at a Significant Rate
Based on the application, the market is segmented into the rail, agriculture, surveying, LBS, timing synch, road, maritime, aviation, and others. Road application held key shares in 2019 and projected to be dominant in the market up to 2027. GNSS is used for numerous applications in LBS, such as navigation, mapping & GIS. In navigation, route planning, and real-time instructions for road navigation and pedestrian. It is used in advertising and geo-marketing as customers get personalized offers by a combination of customer preferences and data positioning. It has some other applications in LBS, such as enterprise applications, safety, and emergency, sports, games and augmented reality, personal tracking, and social networking.
Smart mobility applications used to improve the comfort, effectiveness, and efficiency of road transportation. Smart mobility includes navigation, fleet management, satellite road traffic monitoring, and traffic control is gaining popularity due to increased use of technologies to improves road transportations safety and security. The GNSS system is also used by toll operators in road user charging, and by insurance telemetric—improved facilities such as e-Call for ERA-GLONASS in Russia that sends automatic call in case of an accident. Smart macrographs rely on navigation positioning to support road enforcers in determining vehicle position.
GNSS has widely used for cadastral surveying for establishing property boundaries. It is also used in construction surveying that covers different stages in engineering work and building construction. Navigation based devices used in machine control applications for automatically controlling blades and buckets of construction equipment based on 3D digital design. It is used for mapping to locate specific points for urban planning, environmental, and cartographic purposes. Navigation based devices used for mine surveying and infrastructure monitoring. Mine surveying includes operations related to the mine explorations and safety checks. Infrastructure monitoring involves critical infrastructure monitoring to prevent major disasters and emergencies.
North America global Navigation Satellite System Market Size, 2019 (USD Billion)
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The market is divided into depth analysis of all regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is projected to expand at a CAGR of 9.31% up to 2027.
The dominance of the U.S. is attributable to the multi-sensor data acquisition system for track mapping that is highly used in the country. Driver Advisory System (DAS) is highly adopted in Mexico and Canada for rail applications to optimize traffic flow, less energy, and low cost is anticipated to boost the market in North America. In the U.S., PTC (Positive Train Control) implementation is on its way. PTC combines control, communications, and information systems safety, security, precision, and efficiency for train movements and includes navigation as a technology for positioning of the train.
The market in the European region is expected to grow at a CAGR of 9.97% due to the strong presence of components manufacturers in the region. The major growth by the manufacturers is expected to perform strongly in Road, Surveying, and Maritime applications. Asia Pacific global navigation satellite systems market is projected to grow at a 12.99% CAGR up to 2025. The major growth in revenue is supported by China, Japan, India, and Australia. The major growth in China is attributed to the large population of consumers, such as electronic devices, smartphones, positioning devices, and other key applications. India has a strong development in navigation satellites such as NaavIC for the country. It has developed for aviation, marine, automotive, and other critical applications.
Latin America &the Middle East & Africa was accounted for the less market share owing to the presence of a hugely under-penetrated market. However, the adoption of navigation based devices and services pin Saudi Arabia, Turkey, and Egypt are likely to drive the growth for the Middle East & Africa region due to the increasing use of GNSS by rail operators and service providers in these countries.
Strong Portfolio has Propelled Qualcomm, Trimble, and Hexagon Lead the Global Market
The market is fragmented owing to the strong product portfolio of major companies in developed and emerging countries. However, the presence of strong barriers to entry is projected to lead to an increasing number of domestic players entering the global market and is projected to lead to a highly fragmented market by 2027. The market has several manufacturing companies operating across the globe. Some of the key players are Qualcomm Plc., Texas Instrument, Trimble, Rockwell Collins are among others. Other key vendors include Haris Corporation, Cobham Plc., and Laird Plc. have a strong presence through their products and services in the global navigation satellite system market. Introduction of innovative products, services, software, new product launch, strategic acquisition, partnership, and collaboration are some of the key strategies adopted by OEMs operating in the global navigation satellite system market.
An Infographic Representation of Global Navigation Satellite System (GNSS) Market
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The global navigation satellite system market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, solutions offerings, components type, and leading applications of the navigation based device's product. Besides this, the GNSS report offers insights into the navigation satellite technology trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD billion)
Fortune Business Insights says that the global navigation satellite system market size was USD 161.27 billion in 2019 and is projected to reach USD 386.78 billion by 2027.
In 2019, the North America market value stood at USD 41.33 billion.
The market is growing at a CAGR of 12.83%, and the market will exhibit steady growth in the forecast period (2020-2027).
The Global constellations segment and road segment is expected to be the leading segment in this market during the forecast period.
Increasing demand navigation-based applications and location based-products and devices by market players are major factors driving the growth of the market.
Qualcomm, Hexagon, and Trimble Plc. are major OEMs in the global market.
The Asia Pacific dominated the market share in 2019 and expected to drive the highest growth rate throughout the forecast period.
Launch of advanced technologies by market players like 5G technology, IoT, smart city projects, driver assistance systems, and fleet management systems are expected to drive the adoption in the global market.
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