Imagine buying a used car with a car phone in it. It's not exactly a feature you would brag to your friends about. Outdated technology sharply reduces the resale value of a car. As a result, auto manufacturers are shying away from installing in-dash navigation systems.
Land Rover has made navigation systems optional on their LR2 model in order to keep the resale value of all LR2s from depreciating. According to Automotive Lease Guide (ALG), after three years an LR2 without navigation will be worth 55% of its original value, while one with the GPS device will be worth 52%.
The reason, ALG says, is because used car buyers are looking for bargains, not technology. Technology changes rapidly, and newer, more efficient navigation devices are upgraded every year or less. Dealers are likely to promote portable units with a multitude of uses. Buyers can purchase low end models all the way up to state of the art products with plug-in software cards that list restaurants, movie times, and traffic reports.
Navigation units are the biggest growth area in automotive technology right now.
Why This Trend Is Growing
- Declining Value
- The trend of declining value in cars due to outdated technology creates opportunities for innovative navigation solutions.
- Portable Navigation
- The trend towards promoting portable navigation units presents innovative opportunities for manufacturers to integrate navigation technology in new ways.
- Upgradable Navigation
- The trend of upgrading navigation technology every year or less presents opportunities to create more upgradable navigation solutions for cars.
Industries Being Reshaped
- Automotive Industry
- The automotive industry can capitalize on navigation trends by integrating innovative navigation technology into new car models.
- Consumer Electronics Industry
- The consumer electronics industry can innovate by creating new portable navigation solutions that offer more than just basic navigation features.
- Software Industry
- The software industry can capitalize on the trend of upgrading navigation technology by developing more upgradable software for navigation devices.
