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SpatialNews Press Release

Wireless World Will Drive GPS Applications, According to New Allied Business Intelligence Study


OYSTER BAY, N.Y., Dec. 13, 2000-- Wireless connectivity combined with location-based services are resulting in a large upswing in the use of global positioning system (GPS) services, according to a new report from Allied Business Intelligence (ABI). While some GPS applications have been utilized for years, new market segments are still being revealed as a new generation of products are developed.

Examples of satellite navigation systems with a potential for future integration include GPS in the US, GLONASS in Russia and Galileo in Europe. However, the US Navy's GPS is the first and only system that is fully operational with existing users. The transition from government applications to commercial applications for GPS will result in more widespread use of GPS-based services, particularly with the large growth of wireless users throughout the world.

The US GPS system addresses a plethora of industries including agriculture, aviation, communications, in-vehicle, marine, recreation, science, surveying/ mapping and timing. "By 2005, the major GPS segments will be in-vehicle navigation, communications and vehicle/freight tracking," according to Anna Karampahtsis, ABI analyst and author of the newly released report, "GPS: Global Opportunities in Satellite Navigation Technologies."

Consumer awareness, increased product availability, reductions in price and changes in standards and legislation are the main factors that will drive the GPS market. Some examples of changes in the industry are the decision to discontinue selective availability, the intentional degradation that imposed accuracy errors and the Federal Communications Commission's requirement for all wireless carriers to have 911 location-tracking systems in operation by October 2001.

According to the new ABI study, by 2001, the global GPS equipment shipment market value will reach approximately $19 billion, climbing to approximately $60 billion by 2005. For the same year, the world value of GPS equipment shipments for communications could reach approximately $10 billion, with in-vehicle navigation systems reaching $22 billion. Variations in revenue generation for GPS equipment worldwide, will be due to the differences in systems' and receivers' prices and availability, consumer awareness and the dissimilarities in consumers' needs for applications in each region.

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