Beginning in 2007, China's car navigation market will enter a new period of development, the increasingly large-scale market will maintain rapid development trend.
One, China's car navigation market
GPS car system market can be divided into two ways of front-loading and rear-loading. Front-loading system is assembled in the vehicle factory before the vehicle on the supporting products. Rear-mounted systems are installed on the vehicle during the vehicle's use.
According to relevant reports, Japan's car navigation usage rate of 59%, Europe and the United States is about 25%, the international market average of 40%, and as of the end of 2005, China is equipped with car navigation equipment less than 100,000 cars, and in 2005, compared with 5.76 million amount of automobile sales, China's automobile car navigation usage rate is less than 5%. It can be said that China's car system is still in the market cultivation stage, such as navigation terminal as a standard automobile manufacturers to risk a lot of risk, so many manufacturers chose the aftermarket. 2006 China's sedan ownership has more than 30 million, this part of the vehicle are aftermarket navigation terminal potential market, so aftermarket in the next few years will still be the mainstream of the market. However, relative to the rear equipment, the front of the car can be a complete unification of the navigation system and the car system, before leaving the factory have undergone rigorous testing, its stability is much higher than that of the rear equipment. As the consumer market continues to mature, the aftermarket will gradually shrink, the car navigation as a standard can provide consumers with greater convenience.
Two factors affecting China's car navigation market
2.1 Promotional factors
Beijing Olympics 2008
With the 2008 Beijing Olympics approaching, it is an excellent development opportunity for the car navigation market. Beijing is planning to install GPS monitoring systems for the city's public ****cars by 2008, and it is expected that the cost of the GPS system installations will be about RMB 1.92 billion. It is predicted that around the logistics market of the Olympic Games, there will be 1 million cars need to install navigation and safety monitoring systems, the 2008 Olympic Games released a huge GPS business opportunities, will be a strong stimulus to the car navigation market in mainland China.
Road network
Along with the rapid development of China's economy, road construction is becoming more and more perfect, the road network is becoming more and more complex. 2006, this year, China's mileage of new and reconstructed highways amounted to 340,000 kilometers, of which 4,460 kilometers of expressways. By the end of 2006, the total mileage of China's highways reached 3.48 million kilometers, highway 45,400 kilometers. In the face of increasingly complex road conditions, car owners have a growing demand for car navigation.
Self-driving tour
According to the relevant statistics of the State and Guangdong Tourism Bureau, the number of self-driving tourists in various scenic spots of the country last year accounted for more than 1/3 of the total number of people received, and it is expected that China will soon enter into the era of self-driving tour. With the increasing number of self-driving tourists, the navigation products that can make the traveling process easy and convenient and find the target location are becoming an indispensable choice for more and more car owners.
Special industries
In addition to the purchasing power of private car owners for car navigation products, special industries should not be ignored. Many domestic trucks doing medium and long-distance transportation also have a clear demand for car navigation. Owners hope that the system can meet the needs of traffic navigation, but also for the driver in the long-distance transportation process to provide entertainment and information communication convenience. It is reported that transportation vehicles in the national logistics industry will be installed with GPS navigation and safety systems one after another, with 100,000 vehicles within the last two years and 1 million transportation vehicles installed with GPS safety monitoring systems within three to four years. The cost of this budget is about 19.18 billion RMB. And the public security sector, emergency industry, public transport industry and other special industries for the car navigation demand is also increasing dramatically.
2.2 Constraints: China's automobile market pattern
Although the car sales alone from the point of view of China's car sales, but from the point of view of the models sold, the majority of buyers tend to choose the basic, low-priced models. Most of these basic sedan prices are below 100,000 yuan, and the price of front-loading car navigation is relatively high, most car owners to think that the price of car navigation products are higher. So for the current domestic market for the front, most of them are luxury cars, the front market has not been well developed.
Three, China's car navigation market development trend
With the continuous progress of technology and user demand continues to grow, a variety of consumer electronics products between the emergence of two trends, one trend is specialization. This is reflected in the product line segmentation process, a variety of products with only a few functions or even single function, but it has an extremely deep degree of specialization, to meet consumer demand for a certain functional depth, and make the function to achieve a more refined, perfect, which is a lot of multi-functional products can not be replaced. And another trend is the opposite, is the development of multi-functional, that is, with a product can replace a variety of products, for consumers, can save costs.
From the product point of view, the latest release of the car navigation product positioning is not limited to navigation equipment, but on a multi-functional vehicle terminal. In addition to the satellite synchronization precise positioning, the best path search, synchronized voice navigation, life information query functions and city map accurate navigation, but also integrated mobile TV, video playback and electronic photo albums of the entertainment function, as well as Bluetooth communication, wireless Internet access and other functions.
With the development of chip technology, cell phones, PDAs and other products to integrate GPS functions of the cost continues to decrease, making the navigation of the market by smart phones, PDA products and other electronic products with related functions, is bound to still be divided up part of the car navigation market. So multi-functional development has become the mainstream development direction of the car navigation market. The survey shows that many car owners believe that the current car navigation function is too single, can not meet their own needs, and said they look forward to manufacturers to launch a more powerful and richer products, so the design of multi-functional products, to provide more convenience for the user to bring more enjoyment, will certainly gain the favor of consumers.