STUDY SHOWS ONE IN FOUR CONSUMERS OWN NAVIGATION SYSTEMS

Over 25% of respondents indicate that they currently own some type of vehicle navigation system, according to results from the Morpace Inc. Omnibus Study fielded in July 2008. The rate of ownership of this technology is highest for married respondents and those earning at least $50,000 annually, and 39% plan to purchase a navigation system in the future.

"This survey confirms that the ownership of navigation systems will continue to grow in the marketplace," states Bryan Krulikowski, vice president, Morpace Automotive Research Practice.

Portability is especially important among those who own or are considering a navigation system. Nearly three-quarters of respondents prefer a navigation system that can be moved from vehicle to vehicle versus a system built into the dashboard of their vehicle or a system integrated into a cell phone.

"Consumers overwhelmingly prefer a system that can be used in multiple household vehicles," says Krulikowski. "Aftermarket manufacturers will surely benefit from this trend, and OEMs are already starting to integrate portable systems into their vehicles."

Prevention of getting lost is ranked as the highest reason for owning a navigation system. Other important reasons include the convenience of not having to pre-plan a route and the ability to change routes "on the fly."

Of those not interested in navigation systems, 36% say it's primarily because they don't need them rather than because of cost; 67% cite they don't travel to unfamiliar places often enough or they don't mind using maps or Internet-based directions. Only 14% cite cost as the primary reason.

SEMA market research shows that sales of navigation systems/video/entertainment products reached $1.53 billion in 2007, a jump of 7% from 2006. Each year, specialty-equipment manufacturers unveil their latest GPS navigation and multimedia systems. At the 2007 SEMA Show for example, stand-alone GPS units accounted for 9.6% of the mobile electronics entries in the SEMA New Products Showcase. Multimedia receivers that come equipped with GPS navigation accounted for 6.6% of the entries.

For more original SEMA market research, visit www.sema.org/research.

Source: "Morpace Reports Ownership of Vehicle Navigation Systems Expected to Grow" (press release), Morpace Inc., August 18, 2008.