Mobile navigation is becoming more than just car navigation, with pedestrian and multimodal navigation growing in importance. While handset-based navigation has advantages like always being with the user and connectivity for up-to-date content, disadvantages include challenges integrating with vehicles and interfaces not optimized for in-vehicle use. Major providers of mobile mapping and navigation apps include Google, Nokia, Telenav, and TomTom, with approaching 200 million global users in total. Business models are evolving from trial/buy options to bundles with devices/plans and low-cost/free apps supported by premium features and advertising. Future challenges include differentiation, user engagement, and appropriate monetization strategies.

1. Mobile Navigation
Trends & Analysis
Berg Insight, November 2012
André Malm, Senior Analyst
andre.malm@berginsight.com
November 2012

2. Agenda
 Overview of smartphone platform developments.
 Navigation on mobile phones.
 Segmentation of leading handset navigation industry players.
 Evolution of handset navigation business models.
November 2012

3. November 2012
Active smartphone users Q3‐2012
1 billion worldwide
180 million in Western Europe
140 million in North America

4. November 2012
Smartphone platform developments, Europe Q3‐2012
15 %
6 %
5 %
5 %
65 %
Share of sales Trend
21 %
6 %
5 %
15 %
50 %
Installed base

5. Navigation on mobile phones
Using handsets for navigation services has both advantages and disadvantages compared to PNDs and
in‐dash navigation systems. Overall, handset‐based navigation is much more than car navigation.
Pedestrian and multimodal navigation are important. Even indoor navigation is becoming possible.
Advantages
 Handset is always with the user.
 Car, pedestrian and multimodal navigation.
 Connectivity for up‐to‐date content.
 Integration with other apps on the handset.
Disadvantages
 In‐vehicle integration remains challenging.
 UI not optimised for use in vehicle.
 While navigating, other device features may be
unavailable.
November 2012

6. Handset‐based turn‐by‐turn navigation users
Million active users
November 2012
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012
EU27+2
North America
ROW

7. Navigation provider segmentation
Branded
Handset apps only
White‐label
Multiple platforms
November 2012

8. Mapping & navigation service providers (I/II)
Approaching 200 million users of mobile mapping and navigation apps globally at the end of 2012.
Global market value about € 800 million.
Google Maps Navigation
Est. 30 million users
of navigation on Android.
Increasing use of own maps.
Appello Systems
Over 20 million users of
maps and navigation.
Uses platform developed by
deCarta.
Waze
28 million users globally.
Free, community‐based
navigation and traffic
service.
Telenav
34 million users. AT&T and Sprint
account for 70 % of revenues.
Increasing focus on own brand and
automotive services.
Telmap
10 million users in total.
Strong presence with operators
in EMEA. First branded service
launched in October 2012.
TCS
Est. 10 million subscribers,
mainly from Verizon Wireless.
Expanding presence in
Latin America with Telefónica.
November 2012
Nokia
Several million users of
free maps and navigation.
Launched HERE brand for
cross‐platform services.

9. Mapping & navigation service providers (II/II)
Many smaller service providers have a strong presence on the European market.
Navmii
Over 11 million users of
free on‐board navigation
apps worldwide. Uses
OpenStreetMap data. Adding
crowd‐sourced content.
Skobbler
3 million users of low cost
navigation app for iOS with
OpenStreetMap data. Used
as showcase of technology.
Sygic
Several million users
globally. Onboard
TomTom maps and 3D
display of landscapes.
Navitel
5 million users, mainly in
Eastern Europe.
Has own map data for
Eastern Europe.
NDrive
Over 3 million active
users.
Branded and white‐label
onboard navigation apps.
Garmin
Several million users.
Garmin and NAVIGON apps
available on all leading
smartphone platforms
November 2012
NaviExpert
Nearly 2 million users of
branded and white‐label
navigation in Poland.
Own traffic service.
ROUTE 66
Several million users of
branded and white‐label
mapping and navigation.
Augmented reality.

10. Evolution of business models (I/II)
With free navigation available on all leading smartphone platforms, new business models are needed.
In the past, the most common business model has been try and buy propositions. Operators and
device vendors are launching bundled services to increase ARPU and reduce churn. Up‐sell premium
content and features.
Try & buy
 Free trial.
 Daily, weekly, monthly licenses.
 Premium content and features.
 Any device or service plan addressable.
Device and service bundles
 Service included with new handset or service.
 Increase ARPU and reduce churn.
 Up‐sell of premium content and features.
November 2012

11. Evolution of business models (II/II)
Low cost navigation apps ensure visibility in app stores to drive downloads. Monetise with premium
features and content that enable customisation for users. Grow user base to capture future ad and
referral revenues.
Low cost and free to all
 Free pre‐load or download for all users.
 Basic navigation is low cost or free.
 In‐app purchase of premium features.
 Advertising, coupons and booking referrals.
November 2012

12. Challenges for handset navigation providers
 Differentiation: Growing competition from free offerings on all leading smartphone platforms.
Navigation providers need to differentiate their offerings to attract users. Find features and content
that appeals to users in different segments and markets.
 Increase user engagement: Apps need to be useful on a daily basis for customers.
Identify and establish partnerships with local content providers to tailor apps to local needs.
 Find appropriate monetisation models: Multiple models necessary for extracting value from a
growing base of active users.
Find relevant partners that are well placed in the advertising value‐chain in each local market .
April 2012

13. andre.malm@berginsight.com
+46 76 114 24 01