Global Positioning System (GPS) capabilities are available as embedded functions in many automobiles, even in cell phones. And by the year 2013, GPS receiver chipset shipments are expected to reach 1 billion per year, according to a new study by market research specialist ABI Research (www.abiresearch.com). The continuing drop in prices for these chipsets will be more than offset by the strong growth in volume.

Analyst Jamie Moss notes, "Three factors will intersect to shape the future of the GPS IC market. The average price of the chipset will fall to $3.50 or below by the end of 2008, permitting a true mass market adoption. This fall in ASP is driven by manufacturers' goal of producing receivers that can be included in lower-margin devices such as mobile phones: handset-based GPS will be critical to strong market penetration. The benefits will filter down to more traditional GPS uses such as in-car navigation. Meanwhile, we're seeing growing numbers of acquisitions: large chip manufacturers buying up specialist fabless GPS IC vendors in order to include their technologies in solutions that combine GPS with varied wireless RF product offerings, especially Bluetooth."

The new ABI Research report, "GPS Semiconductors," offers vital insight into ongoing innovation in GPS IC design and performance and provides crucial data for GPS IC average selling prices, shipments and revenues to 2013. It forms part of two ABI Research Services: Location Aware Services and Wireless Semiconductors.

ABI Research