ABI Research says that consumer navigation devices still face many challenges on the road to mass adoption. ABI says that the industry needs to focus on new features like 3D maps, multimedia, connectivity, local search, convergence, and business models. These are needed before navigation devices will exceed the current 20% penetration rate.

ABI says that the removal of barriers to the GPS industry will take time. These barriers include the cost and lack of 3G coverage in many parts of the country, lack of interoperability, and user education. In my experience, the biggest improvement many GPS devices need is maps. Several I have tried simply have horrible map coverage in areas that are more rural.

“Mass market adoption will require creative thinking far beyond the current paradigms,” says ABI Research director Dominique Bonte. “First and foremost an uncompromisingly intuitive and simple navigation interface will need to be designed, combined with seamless multi-mode map updates, predictive traffic information, shorter GPS fix times and a wide range of dynamic and relevant content. In order to address the diverse user needs and behavior of all consumer segments, a large choice of form factors and price levels will have to be offered.”

Via ABI Research