Global navigation satellite system (GNSS) chip has a high demand in the semiconductor and electronics industry. In 2022, the market for GNSS chips was held at USD 5.2 billion and is projected to hit valuation of USD 9.7 billion by 2032.
Market research reveals that the demand for GNSS chips has a high potential for growth in the smartphones and automotive segments.
The market is projected to grow moderately at a CAGR of 6.5% and will open up multiple opportunities for manufacturers and resellers in the GNSS chip industry. It has been popular in the market for its multifaceted benefits.
GNSS chips, in the forecast period, will facilitate accurate and precise location tracking. This would enable various location-based services such as turn-by-turn navigation, geo-fencing, and asset tracking.
GNSS chips can provide critical information for emergency response and search and rescue operations. For example, in case of a natural disaster, GNSS chips can help rescue teams locate the affected individuals quickly and efficiently.
Its use in vehicles can enable advanced driver assistance systems (ADAS) and autonomous driving features, improving road safety and reducing accidents. Additionally, the use of GNSS in logistics and transportation can help optimize routes, reduce fuel consumption, and improve delivery times.
In terms of electronic appliances, GNSS chips are of prime importance as precise satellite services have become very important for consumers. Pushing connectivity across the globe for work, entertainment and gaming would provide a rising opportunity for GNSS chip manufacturers.
Consumption of electronic products like smartwatches and smartphones are on the rise. This has motivated manufacturers to invest in R&D for this market and innovate cost-efficient and high-quality GNSS chips.
As per the research report, rise of industry 4.0 will maximize the opportunity in this market and manufacturers of GNSS chip will need to outpace peers with technological advancements that can increase speed of production of these chips.
| Attributes | Key Insights |
|---|---|
| GNSS Chip Market estimated Size (2022E) | USD 5.2 billion |
| Projected Market Valuation (2032) | USD 9.7 Billion |
| Value-based CAGR (2032 F) | 6.5% |
| USA Value-based CAGR (2022 to 2032) | 5.4% |
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As per Future Market Insights (FMI), GNSS chip industry has witnessed a skyrocketing growth in the historical period of 2017 to 2021 at around 7.5% CAGR.
For the forecast period 2022 to 2032, the market is poised to generate an absolute USD opportunity of USD 4.6 billion, the market is projected to reach a valuation of USD 9.7 billion by 2032.
In recent years, the automotive sector has been at the forefront of incorporating GNSS chips. The demand for customized equipment has increased significantly from the historical period and is expected to grow steadily at a CAGR of 6.3% by end of 2032.
In the forecast period, the market for GNSS chips is anticipated to grow rapidly as numerous consumer products with location and functionality tools rise. It is projected that this trend will lead to an increase in demand for low-power GNSS chips.
Compared to GPS, which just provides positioning, the GNSS chip has a higher precision and a greater number of satellites. This makes it more durable for the market
The businesses engaged in the production of GNSS chips have been concentrating on increasing the sensitivity for indoor signals, which delivers more precise results. This advancement would aid the GNSS chip's market penetration.
Principal Consultant
The high cost of GNSS chips and security concerns are the prominent growth-restraining factors. For high-precision applications, GNSS chips are quite expensive. Small businesses or those with tight finances find it challenging to embrace technology, restraining the market growth of GNSS chips.
Coverage is also often limited in several areas because of natural barriers like mountains, forests, and structures like buildings. This has an impact on the precision of location data, restricting use of GNSS technology.
As a counter to GNSS chips, there are other technologies available in the market like Wifi-based, Bluetooth-based technology that hinder growth of this market.
In a handful of applications, such alternative technologies can deliver more precision at a cheap price. This makes the proliferation of GNSS chip technology difficult.
The usage of GNSS technology poses barriers for personnel in national security and defence agencies, with regards to cybersecurity. Security concerns further restrain the growth of this market.
Asia Pacific to Exhibit High Demand Driven by Automotive and Consumer Electronics Industries
Asia Pacific is expected to have a significant demand for GNSS chips throughout the forecast period. In Asia Pacific, automotive and consumer electronics has been on rise with India, China and Japan dominating the manufacturing vertical. This has resulted in a high demand for GNSS chips in the region.
Historically, this region has grown from a market size of USD 1.8 billion to USD 2.6 billion between 2017 to 2021. By 2032, the Asia Pacific market is projected to hit USD 4.9 billion and surpass a CAGR of 51.1%.
The prominent contributor to Asia Pacific region has been China market which is projected to reach up to USD 2.6 billion by 2032. China, being the predominant manufacturing hub would provide high growth opportunity for global GNSS chip manufacturer.
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Industry 4.0 to be the Prominent Trigger for GNSS Chip Industry Boom in the USA
The USA market for GNSS chips is expected to grow to be worth USD 1.4 billion with an absolute USD growth of USD 574.5 million by 2032. It has grown at a CAGR of 4.4% from 2017 to 2021 and is expected to grow at a CAGR of 5.4% between the year 2022 to 2032.
The consumer electronics industry has become a key consumer of the GNSS chip technology in the USA. With the growing popularity of smartphones, tablets, and wearables, there has been an increased demand for location-based services. GNSS chips are essential components for these services, enabling accurate location tracking and navigation.
The rise of Industry 4.0 has also contributed to the growth of the GNSS chip industry in the USA. A noticeable trend has been the rising adoption of Internet of Things (IoT). This has led to heightened demand for GNSS chips in industrial applications such as asset tracking, fleet management, and supply chain logistics.
GNSS chips are also crucial for precision agriculture and autonomous vehicles, which are key areas of focus for the industry 4.0 revolution.
Government Initiatives Promoting GNSS Chips Will Bolster High Market Demand
The market for GNSS chips in China is expected to grow to be worth USD 2.6 billion with an absolute USD growth of USD 1.4 billion by 2032. The demand for GNSS chips in China has grown at a CAGR of 9.6% from 2017 to 2021 and is expected to grow at a CAGR of 8% from the year 2022 to 2032.
The growth of this market in China is largely attributed to government initiatives and investment.
The Chinese government has been investing heavily in developing its satellite navigation infrastructure, including the Beidou Navigation Satellite System, which has become a key driver of growth for the GNSS chip market.
China has implemented policies to encourage the adoption of GNSS technology in various sectors. They include sectors like transportation and agriculture, further boosting demand for GNSS chips.
Another factor contributing to the growth of the GNSS chip in China is the rising demand for consumer electronics and IoT devices.
With the growing popularity of smartphones, wearables, and other location-based services, there has been a significant increase in the adoption of GNSS technology. In addition, the rise of the IoT has led to a growing demand for GNSS chips in various applications such as asset tracking and fleet management.
As China continues to lead the global electronics manufacturing industry, the demand for GNSS chips in the country is expected to increase further, driving the growth of the market.
High Usage of Integrated Smartphone Applications to Increase GNSS Chip Demand
The smartphone manufacturing segment is projected to provide significant demand for GNSS chips. The CAGR of the smartphones segment was around 7.2% from 2017 to 2021 and is forecasted to grow to around 6.4% by the end of 2032.
The GNSS chip in smartphones receives signals from satellite systems and determines the exact location of the device. Numerous location-based applications, like maps, weather apps, and ride-sharing apps, utilize this information to provide services.
Due to the rising demand for location-based services and the widespread adoption of smartphones, GNSS usage has greatly expanded. Smartphones now come equipped with GNSS technology, allowing users to navigate, identify local locations, monitor their health, and more.
The Rise Of Automotive Sector Along With Industry 5.0 Applications Will Boost GNSS Chip Manufacturers
The top category by application of the GNSS chip industry is the automotive industry. The expansion of this industry can be connected to the increasing need for customized equipment. The CAGR for this industry was around 7% from 2017 to 2021 and is forecasted to grow by 6.3% by the end of 2033.
GNSS technology is vital for the operation of ADAS and autonomous cars as it delivers real-time location and data positioning that is necessary for precise navigation and safety.
The market for GNSS chips in the automotive sector is anticipated to rise as a result of the rising demand for connected automobiles. The incorporation of GNSS technology in telematics systems is another key factor driving growth in this market.
The development of GNSS chip solutions is anticipated to present profitable prospects due to technical improvements. It is projected that the rise in demand for Industry 4.0 standards, and the emergence of Industry 5.0 will open avenues for global manufacturers in the GNSS chip industry.
The leading market players are always coming up with innovative ways to provide high-quality products, as well as patent their technologies and products and expand their product lines. The players, who currently hold a small position in the market, are constantly aiming to increase their share.
For instance
The NEO-F10T is the replacement for the extremely well-liked NEO-M8T module and offers a simple path to dual-band timing technology. This gives NEO-M8T users access to better security and timing precision at the nanosecond level.
It provides an ideal turnkey GNSS solution without the requirement for RF and antenna design skills.
| Attribute | Insights |
|---|---|
| Estimated Market Size (2022) | USD 5.2 billion |
| Projected Market Valuation (2032) | USD 9.7 billion |
| Value-based CAGR (2022 to 2032) | 6.5% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD billion) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East and Africa |
| Key Countries Covered | USA, United Kingdom, Germany, France, Spain, Italy, Japan, China, Singapore, Malaysia, Sri Lanka, Kingdom of Saudi Arabia, United Arab Emirates, South Korea, Finland, Hungary, Rest of the World |
| Key Segments Covered | Device, Application, Region, Vertical |
| Key Companies Profiled | Qualcomm Incorporated; STMicroelectronics NV; Mediatek Inc.; U-Blox Holding; Broadcom Limited; Intel Corporation; Furuno Electric Co., Ltd.; Skyworks Solutions, Inc.; Quectel Wireless Solutions Co., Ltd.; Navika Electronics |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is likely to be worth USD 5.2 billion in 2023.
STMicroelectronics NV, and Mediatek Inc. are key market players.
The market’s CAGR from 2022 to 2032 will be 5.4%.
Increasing consumption of smartwatches and smartphones to fuel the market prospects.
From 2018 to 2022, the market registered a CAGR of 7.5%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Device 5.1. Smartphones 5.2. Tablets 5.3. Personal Navigation Devices 5.4. In-vehicle Systems 5.5. Others - Wearable Devices and Digital Cameras 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 6.1. Navigation 6.2. Mapping 6.3. Surveying 6.4. Location-based Services 6.5. Telematics 6.6. Timing and Synchronization 6.7. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Vertical 7.1. Consumer Electronics 7.2. Construction 7.3. Agriculture 7.4. Automotive 7.5. Military & Defense 7.6. Marine 7.7. Transport 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. Middle East and Africa 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Qualcomm Incorporated 16.2. STMicroelectronics NV 16.3. Mediatek Inc. 16.4. U-Blox Holding 16.5. Broadcom Limited 16.6. Intel Corporation 16.7. Furuno Electric Co., Ltd. 16.8. Skyworks Solutions, Inc. 16.9. Quectel Wireless Solutions Co., Ltd. 16.10. Navika Electronics 17. Assumptions & Acronyms Used 18. Research Methodology
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GNSS Chip Market
