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Consumers buy into GPS

Future looks bright for navigational tech

By Jessica Lipowski | Monday, August 4, 2008

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Manufacturers and consumers are finding new applications for the Global Positioning System, or GPS, as its navigational technology becomes more accurate and accessible.

In fact, sometime in the not-too-distant future, a GPS device will be able to pinpoint a kiosk in a mall that sells a specific flavor of Smoothies and offer parched users driving and walking directions to that location, industry experts say.

Having begun as a military tool and evolved into a civilian convenience, GPS is poised to become the ubiquitous personal electronic companion.

The U.S.-owned utility has been around for a while, with its origins in monitoring missiles and other secret military uses, says Thilo Koslowski, lead automotive analyst of Gartner Inc., an information technology research and advisory firm. The technology was first opened to consumer use during the Clinton administration. It provides users with positioning, navigation and timing services. The Air Force develops, maintains and operates the space and control segments of the GPS, gps.gov states.

GPS is rapidly spreading into several sectors of technology, ranging from built-in car devices to mobile phones, from dog collars to exercise wristwatches. New uses are being discovered right now, such as prisoner tracking, locating farm animals, location-based gaming and lone-worker protection.

"It's helping consumers not only get from point A to B faster, easier, but helping improve the quality of life of consumers," says Steve Koenig, director of industry analysis at the Consumer Electronics Association in Arlington.

GPS devices are the fastest-growing segment of the consumer electronics industry, according to Tom Murray, vice president of marketing of TomTom Inc., maker of car navigation systems.

In 2006, 2.4 million personal navigation devices were sold in the United States. In 2007, 10 million devices were sold in the U.S., Mr. Murray says.

Mr. Koslowski estimates that as many as 20 million personal GPS devices will be sold in the U.S. this year and that 60 million people will own personal navigation devices worldwide. By 2012, as many as 112 million people will be using GPS devices, he predicts.

A driving force behind the growth of GPS consumerism is the enhancement of users' experiences, whether they are on foot or in a car, Mr. Koenig says.