According to a new research report from the analyst firm Berg Insight, global shipments of Personal Navigation Devices (PNDs) will peak at about 42 million units in 2011 and gradually decline thereafter. Growing shipments in markets such as Brazil, China, India and Russia are not likely to compensate for the decline in Europe and North America.

In mature markets where the installed base of PNDs is already high, the device category is facing increasing competition from smartphones and low-cost, in-dash navigation systems. However, aftermarket navigation systems will be the largest segment for several years to come and many customers, especially in Europe and North America, are likely to use more than one navigation capable device for different occasions in future.

PND vendors are increasingly looking at new features and value-added services to resist slower growth and increasing competition. For example, they are adding larger screens and cellular connectivity to new models.

Berg Insight forecasts that more than 80 percent of PNDs shipped worldwide in 2015 will have integrated cellular connectivity. “Sales of replacement devices to existing customers now account for about one third of shipments in mature markets”, said André Malm, senior analyst at Berg Insight. He adds that customers looking for a new PND typically want a larger screen and new services such as traffic information or speed camera warnings.