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The GNSS chip market is estimated to grow by USD 1,708.25 million at a CAGR of 5.31% between 2022 and 2027. The growth of the market depends on several factors, including government initiatives and support, rising investment in satellite navigation programs, and innovation in navigation and positioning devices.
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Government initiatives and support are notably driving the market growth, although factors such as the high initial investment in the agriculture sector may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Government initiatives and support are notably driving the market growth. For instance, the European Commission has approved a rule requiring satellite and Wi-fi location services to be included in newly released smartphones. This rule states that chipsets with GNSS capabilities should connect to the EU's Galileo satellite system, which offers precise positioning and timing data.
The market is anticipated to expand during the forecast period due to top GNSS chipset suppliers creating Galileo-ready chipsets and major smartphone manufacturers incorporating them in their most recent smartphone models. As several governments are deploying regional constellations to enhance navigation and mapping services, the market is expected to expand globally during the forecast period.
The growing incorporation of GNSS chips with IoT technology is one of the emerging market trends. The Internet of Things (loT) defines the phenomenon of interconnectivity between various devices with embedded computing capabilities, not just computers. The Internet of Things (IoT) has a big impact on a variety of healthcare, automotive, and navigation applications, from managing location data to tracking locations in real-time.
As a result, it is anticipated that the demand for precise GNSS chips in various devices will increase significantly in these industries. As this trend is expected to continue, it will have a positive impact on the market during the forecast period.
The high initial investment in the agriculture sector is a major challenge impeding market growth. The agricultural sector deploys GNSS systems to increase agricultural production. It will be one of the fastest-growing segments and create a huge demand for applications in precision agriculture. The main challenge here is that the farmers must bear the high cost of the machinery and tools used for precision farming.
For a complete precision farming system to be installed, the guidance devices must be integrated with the farming equipment, monitoring, and sensing equipment must be installed, and the entire system must be integrated with the farm management database and software. As marginal farmers are hesitant to adopt precision farming techniques because of the process's high initial costs, the market in focus is expected to witness slow growth during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Futurlec - The key offerings of the company include the GNSS chips and other related solutions such as GPS Module EM 406A.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market share growth by the smartphones segment will be significant during the forecast period. Smartphones frequently incorporate GNSS chips as a crucial part of their location-based services and navigation systems. Through the use of signals from various GNSS constellations, they enable smartphones to pinpoint their exact location. This makes a variety of applications possible, including navigation, maps, location-based social networking, and advertising.
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The smartphones segment was valued at USD 3,016.39 million in 2017 and continued to grow until 2021. The market for GNSS chips has expanded as a result of the rising demand for location-based services and smartphone-based navigation. The market is growing as a result of the rising popularity of using smartphones for location-based services like food delivery and ride-hailing. Furthermore, as the adoption of autonomous vehicles rises, and the demand for sophisticated location-based services rises, the market is anticipated to expand further. Additionally, the smartphone segment is expected to witness a growth rate of 4.72% and 4.88% in 2023 and 2024 with respect to revenue, respectively. This implies a steady growth of the smartphone, which, in turn, will propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC held the largest share of the global market in 2022. South Korea, Japan, and China were the largest contributor of revenue to the market in the region. The demand for location-based services and GPS-enabled devices is driving growth in the APAC market. Market expansion is also being driven by the demand for GNSS chips in automotive applications, as autonomous vehicles adopt more sophisticated GPS technology for better navigation and safety features. The demand for GNSS chips is also rising as a result of the proliferation of connected devices like smartphones and wearable technology.
The market's expansion is being further fueled by the availability of advanced GNSS chips with increased accuracy and enhanced features. Additionally, the defense expenditure disclosures of the countries like India clearly indicate the focus of the administration on upgrading the country's defense capabilities. The need to ensure national security and sustain military dominance is increasing the need for GNSS devices, which is driving the growth of the market in the region.
The GNSS Chip Market is pivotal in enabling precise navigation and positioning features across multiple countries and harsh environments. GNSS receivers leverage signals from satellites to determine speed, altitude, and location, crucial for various applications. U-Blox, with products like the ALEX-R5 module and UBX-R5 LTE-M/NB-IoT chipset, leads in low-power wide-area cellular communication, catering to the IoT industry's needs. Sony Corporation offers high-precision GNSS receiver LSIs for IoT and wearable devices, ensuring accurate positioning with L1 and L5 band reception. Collaborations between Qualcomm, Broadcom, and Alps Alpine drive innovation, as seen with the Qualcomm Snapdragon Automotive 5G platform and Multi-Frequency GNSS for advanced driving assistance systems and autonomous driving applications, solidifying the market's role in shaping the future of navigation and connectivity.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
GNSS Chip Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.31% |
Market growth 2023-2027 |
USD 1,708.25 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.85 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, South Korea, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accord Software and Systems Pvt. Ltd., Analog Devices Inc., BDStar Navigation, Broadcom Inc., Furuno Electric Co. Ltd., Futurlec, Hexagon AB, Hunan Bynav Technology Co. Ltd., Intel Corp., MediaTek Inc., Oxford Technical Solutions Ltd., Qualcomm Inc., Quectel Wireless Solutions Co. Ltd., Racelogic, SkyTraq Technology Inc., Skyworks Solutions Inc., SparkFun Electronics, Trimble Inc., u blox, and STMicroelectronics NV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Device
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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