The Price of OEM Installed Nav Systems Due to High-Tech Suppliers, Mandates
Until recently the cost of OEM-installed navigation systems has been a barrier to wide consumer acceptance. As the price begins to come down, the number of in-vehicle navigation systems is expected to grow fourfold in North America by 2019. Automakers could be soon selling 13 million new navigation systems annually.
Consumers have been using GPS navigation systems for a number of years. Most of these have been third party devices sold through big box retailers for a fraction of the cost. While not in the $100 range just yet, the OEM price is coming down.
Ford is offering a system for as little of $600. Using Ford Sync and GM’s OnStar, drivers can be provided with verbal directions to a destination, eliminating the need for a costly video screen.
Third party navigation suppliers like Garmin and TomTom are facing new competition from high-tech firms like Apple, Google, and Microsoft. The high-tech companies are partnering with automakers to develop the connected cars of the future. Connected cars involve more than just navigation systems. They are working to develop the first generation of self-driven cars.
One of the expense-drivers of in-vehicle navigation systems is the in-dash video screen. Federal regulators are currently developing rules to require all light duty cars, truck, and SUVs to be equipped with backup cameras. This mandate would require the installation of video screens. This federal government action would radically drive down the cost of upgrading to a full navigation system.