A core function of the GSA is to engage market stakeholders in the development of innovative and effective GNSS applications, value-added services and user technology. The GSA Market Development Department extensively monitors the GNSS downstream market, offering forecasts and distilling intelligence for the benefit of European businesses and the global GNSS marketplace.
An introduction to the GNSS market
The global navigation satellite system (GNSS) is the infrastructure that allows users with a compatible device to determine their position, velocity and time by processing signals from satellites. GNSS signals are provided by a variety of satellite positioning systems, including global constellations (GPS, GLONASS, Galileo, BeiDou), regional ones (e.g. QZSS or IRNSS) and satellite-based augmentation systems (SBAS), such as EGNOS or WAAS.
The global GNSS downstream market, which comprises both devices (e.g. GNSS receivers) and augmentation services (which relate to all services directly supporting the GNSS system, e.g. augmentation and correction) , is forecast to grow by 6.4% annually between 2015 and 2020. Market growth towards 2025 is expected to decelerate slightly to 3.8%, primarily due to the growing maturity of the global GNSS market leading to more competition and increased pressure on prices.
These downstream markets enable the development of added-value services, growth in which is set to skyrocket between 2015 and 2020 to reach 20% annually, gradually slowing to 9.6% on average through 2025. These comprise all services that create an added value to users by leveraging on GNSS technology, including navigation services, fleet management applications and many location-aware smartphone apps. In 2015, the added-value market exceeded the combined size of the market for GNSS devices and augmentation services for the first time.
The advent of 5G, Automated Driving, Smart Cities and the IoT is set to spawn a rapid proliferation and diversification of these added-value services. Their annual revenues will hit EUR 195 bln in 2025, which is more than 2.5 times higher than the expected GNSS device and service revenues for the same year.
Applications in the Road and LBS segments dominate all other market segments in terms of cumulative revenue, with a combined total of more than 93% for the forecasting period 2015-2025.
Other devices may be less numerous, but billions of passengers, professionals, consumers and citizens worldwide benefit from GNSS applications in efficient and safe transport networks, in productive and sustainable agriculture, surveying and critical infrastructures.
The GNSS market can be divided into different key segments, each having specific characteristics and serving different user needs:
- Location-based services (LBS)
- Mapping & Surveying
- Timing and synchronisation (a new segment in the 2015 issue).
To learn more about the GNSS market, please download our latest GNSS market report.