The Rise of Embedded Navigation Systems
In recent years, embedded navigation systems (ENS) have gained interest due to the rising number of connected services integrated within infotainment systems. Guidance visualization has also been refined to enhance the driving experience. Current ENS are complex systems integrated with other vehicle systems and connected to the cloud. This ecosystem provides online and offline location search, OTA map updates, HD maps, real-time traffic information, and point-of-interest search features among many others.
This study aims to answer the following questions: How are various brands adapting to the need for ENS? What are different brands doing with this technology now and in the future? Are embedded navigation systems still being fitted in the latest vehicle in the US market? How will this technology compete with screen duplication techniques like Android Auto and Apple CarPlay?
A Brief History of ENS
The embedded navigation system was initially introduced as a premium feature before it became an optional feature across various makes and models. The system gave drivers access to an offline map and integrated GPS for navigation. About 80% of model trims by brands provide ENS as a standard/optional feature, with a market penetration rate of about 50%. In recent years, fewer people have been using the built-in navigation system due to the popularity of online navigation apps available on today's smartphones. This study was conducted to understand the availability of ENS across various brands and its acceptance by customers as demonstrated through the ENS feature penetration rates provided by VehiclePlannerPlus (VPP).
Analysis and Results
This study compared 30 brands in the US and included both premium and mainstream types of vehicles. VPP provided the percentage of trim availability and penetration rates of ENS across the brands we considered. The figure below shows how ENS has been adopted by various brands from 2013 to 2023. The green box represents increasing, yellow represents stable (<=±5%), and red represents decreasing availability of ENS across various brands year-over-year. For 2022, most brands (47.5%) have saturated, and some (25%) are still increasing the availability of ENS across various trims produced. At the same time, some brands (18%), like Chevrolet, Honda, Lexus, etc., are reducing the availability of the feature across trims.
The penetration rate of ENS for premium and mainstream brands from 2019 to 2022 is shown in the figure below. Most brands (about 55%) are showing an increase in the penetration rate of the feature. Premium brands show the highest level of penetration compared to mainstream brands. Using penetration data available from VPP between 2019 and 2022, a linear regression model was employed to forecast the penetration rate of the feature for 2023, which is included as 2023 (Projected) in the figure below. Tesla, Lincoln, Genesis, BMW, Jaguar, and Alfa Romeo are expected to have complete market coverage for the ENS feature by 2023. In comparison, Buick, Volvo, GMC, Mazda, Nissan, and Toyota customers have reduced purchase of the feature year-over-year.
Conclusion
This study reveals how different brands are adapting to the need for ENS through the past decade and in the future, as shown in Figure 1. The automotive market in the US is showing a mixed trend regarding the adoption of ENS in vehicles. Most brands have an ENS feature as a standard/optional feature among the models analyzed. Premium brands are observed to have a higher penetration rate than mainstream brands, as shown in Figure 2. The convenience, connected services, and cost-free navigation applications provided by smartphones might be one of the main reasons for the lower adoption of the ENS feature.
Another factor repelling users from the ENS could be its price, which could impact potential revenue streams for brands. Brands could improve the acceptability of this feature by ensuring up-to-date maps and traffic information, regular software updates, and lower development cycles.
Embedded Navigation System Vs. Screen Duplication
While looking into ENS vs. screen duplication services like Android Auto and Apple CarPlay, we discovered that most brands also provide screen duplication features which enable a more intuitive and convenient way of using smartphone-based navigation applications.
Some of the shortcomings of smartphone navigation applications could be their inability to integrate completely with more areas of the vehicle’s infotainment system (for now), such as the head-up display (HUD). Furthermore, unstable GPS signals and the risk of losing internet connectivity in remote areas could be another disadvantage of smartphone-based navigation applications.
The ENS, on the other hand, will be well integrated with the in-vehicle infotainment system, and drivers can utilize features like the HUD. The ENS feature also provides an offline map and a stable GPS connection to navigate remote and challenging environmental conditions. Also, as we see an increase in the adoption of electric vehicles, ENS could provide connected services by offering better route navigation with efficient charging combating range anxiety, and simplifying the user experience throughout the journey.