The global navigation satellite system chip market is projected to expand at a 6.03% CAGR, attaining USD 10.016 billion by 2030 from USD 7.475 billion in 2025.
The global navigation satellite system or GNSS system is a network of satellites that broadcasts time and orbital data that is utilised for navigation and location calculations. In order for GNSS applications to function efficiently and precisely, satellite signals are extremely crucial. A variety of industries are using these applications, including agriculture, automotive, and defence. A GNSS chip is a highly integrated receiver IC that processes signals transmitted by various GNSS satellites to give users location, velocity, and precise time data. Asset tracking, precision agriculture, vehicle location & in-vehicle navigation systems, mobile accessories, maritime navigation, military, automotive & industrial applications, etc. are some of the applications of GNSS chips.
Key determinants boosting the growth of the GNSS chip market include the growing demand for consumer electronic products with accurate real-time location and navigation features. The demand for wearable technology with advanced features is rising. According to NIH data, 30 per cent of American people were wearable technology. Almost 50 per cent of users rely on this technology every day. Therefore the rising penetration of smartphones and wearable technology such as smartwatches and fitness bands is also contributing to the market expansion as these gadgets heavily include GNSS chips to provide the user with exact positions even whether they are jogging, walking, or driving also while staying connected with their family and friends. Significant technological progress along with continuous product innovations and rising R&D operations by key market players is also propelling the growth of the global market. For instance, in September 2021, American semiconductor manufacturer Broadcom Inc launched the BCM4778, a low-power L1/L5 GNSS receiver chip designed for mobile and wearable technology. The third-generation chip is 35 per cent smaller and uses five times less power while still having the most recent GNSS features.
Global navigation satellite systems or GNSS chips have been deployed in smartphones for a long time. These chips are compatible with all openly accessible satellite networks, including GPS, GLONASS, Galileo, and others. Nowadays almost all smartphones have GPS and navigation technology embedded in them. This technology helps the user to know their current location along with the location of their destination. Various government organisations have mandated the deployment of satellite location services in smartphones. For instance, European Commission has mandated a rule demanding satellite and Wi-Fi location services be built into new smartphones before they are released on the market. The rule states that global navigation satellite system chipsets are expected to have access to the EU's Galileo satellite system, which offers precise location and timing data. Therefore the growing demand for GNSS chips by smartphone manufacturers will drive the growth of the market during the projection period.
Companies are investing in major market activities such as product launches, developments, and collaborations to boost the adoption of GNSS chips in smartphones. For instance, In October 2022, Canadian GNSS data service company RX Networks and the American semiconductor pioneer Qualcomm collaborated to deliver accurate location services for smartphones. The accurate location services from TruePoint.io are now accessible on Qualcomm's Snapdragon 8 Gen 1 and Snapdragon 888 5G Mobile Platforms, according to RX Networks. Android smartphones can now achieve better location precision down to one metre or fewer thanks to TruePoint.io integration.
Asia Pacific region is anticipated to hold a significant market share in global navigation satellite system chips. This region will witness high growth during the forecast period owing to the well-established consumer electronics and semiconductor industry in countries such as South Korea, China and Japan. Rising government investment and initiatives to expand the semiconductor industry and navigation satellite infrastructure in countries such as India, Korea and China are driving the growth of the market in this region. China released its 14th five-year development plan on March 2021 which covers every facet of growth and outlines China's 2035 goal. China's GNSS industry is significantly impacted by the persistent focus on R&D and innovation in the 14th Five-Year Plan. The plan is anticipated to improve GNSS industry research and development, support BeiDou's commercial use, and accelerate fundamental technological progress. In August 2021, the India Department of Space announced the draft of The Indian Satellite Navigation Policy – 2021. The presence of key market players such as Sony Group Corporation, Qualcomm, and Broadcom Inc is also propelling the growth of the global navigation satellite system chip market in this region. Prime markets in the Asia Pacific region are India, China, Japan, South Korea, Taiwan, Thailand and Indonesia.
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