U.S. Consumer GPS Market Largely Untapped

August 16, 2007

In the United States, only one in six adults, or about 17 percent, uses a GPS device or service of some kind, market research firm Harris Interactive said today.

And despite the trend of increasing integration of multimedia functions in personal navigation devices, that's not what Americans are interested in when it comes to GPS technology.

"Despite advances in the technology, improvements in usability, dependability and falling prices, overall penetration remains relatively low for GPS services," said Milton Ellis, vice president of Technology Research, Harris Interactive. "At the same time, 9 percent of adults indicate that they are very or extremely likely to purchase in the next 12 months.

"GPS providers may be able to increase adoption rates by promoting popular features of GPS systems, targeting users of online mapping services and increasing awareness of real-time automatic route recalculations and traffic reports available on many dedicated GPS devices," Ellis said

Among that 17 percent, the most widely used devices were small handheld systems, accounting for 34 percent, and portable car-mounted GPS systems at 33 percent, according to Harris. Other systems used include GPS-enabled PDAs or laptop computers, 26 percent; cars with integrated GPS systems, 25 percent; cell phones, 13 percent; and miscellaneous other GPS devices at 7 percent.

Key features for GPS device owners include automatic route recalculation for navigation errors while driving, with 81 percent of users finding this feature extremely or very useful, while 75 percent feel the same about real-time traffic updates, the market research firm said. Other key features rated useful by GPS device users are multiple destination routing, 73 percent; voice guidance and alerts, 71 percent; text-to-speech capability at 71 percent; inclusion of points of interest such as hotels or restaurants, 63 percent; proximity alerts, 57 percent; 2D and 3D maps, 57 percent; and Bluetooth interface, 45 percent.

But there are a few features that GPS owners may not be interested in when it comes to their devices, Harris found. Just over two-thirds, or 68 percent, say that digital picture slide shows are not useful on GPS, and even with the popularity of digital music, a substantial majority (69 percent) feels that digital music capability on a GPS is not very useful or not at all useful, according to the market researcher.

When it comes to mobile phones, there is similarly little interest in incorporated GPS technology among consumers, but then few Americans are aware that it is an option. Awareness of GPS-enabled navigation on mobile phones remains relatively low with about one in five, or 19 percent, of adults saying they are highly aware, 8 percent extremely aware, and 11 percent very aware of these services, Harris found.

Approximately one in six, or 15 percent, who have a cell phone are interested in getting GPS service on their next cell phone, with half of them, or 53 percent, citing that having GPS would make them feel more secure knowing where they are, regardless of city, and 47 percent saying that it would help them to find alternative routes around traffic congestion. Thirty-eight percent say that providing fast and direct turn-by-turn directions to business meetings and appointments is a benefit, while 33 percent say they would never have to stop and ask for directions, or get lost in an undesirable part of town (29 percent).

Online Mapping: Marketing Outlet for GPS Device Makers

Harris also found that online mapping has become very popular. It found that in the past 30 days, 83 percent of online adults have used at least one Internet mapping website.

"Websites that offer static maps and directions to those who are searching online are a real marketing opportunity for GPS providers," said Ellis. "Users who access websites for directions can arm themselves with a print-out to get them to their destination.

"But if they get caught in traffic or they make a wrong turn, a GPS system can provide solutions. And, marketing this advantage to online users while they are planning a trip will help GPS providers connect with a large audience of potential buyers."

Harris's conclusions were based on an online survey conducted within the United States between May 29 and June 5, 2007, among 1,325 adults aged 18 and over, 1,092 of whom are currently cell phone users and 227 are current GPS owners. Figures for age, sex, race, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Online population weights were applied to responses from the online mapping questions.

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