Sep. 14, 2007 (China Knowledge) – According to a report published by CCID<8235>, China's leading research and IT consultant, China is the fastest growing market in the world for GPS navigation operations.
With more than 1,000 GPS services providers in the country, China has currently more than 1 million vehicles on the road, perusing the navigation network. Despite a growing GPS market as the number of GPS subscribers increases, the GPS operations industry may not be able to sustain a healthy market, given the current situations at hand.
As GPS systems are still at its initial phase of operations in China, the industry chain has not been properly identified and established, thereby leading to an overlap in investments and inefficiency. Requiring a relatively low capital of approximately RMB400, 000 to initiate a GPS operation, many operators have since emerged in the market. In order to gain a larger market share, many GPS service providers have been resorting to unfair practices, hindering the healthy growth of the market.
Without a thorough understanding about the automotive industry and the integration of GPS operations, many of the operators are unable to provide quality hardware and software. As a result, GPS operation services in China lack high precision, fast speed and are only capable of offering very fundamental tasks.
In the face of such issues, many Chinese companies many require foreign intervention in order to develop better service models, to enhance its existing service quality and improve efficiency.
The GPS operations industry is mainly concentrated in the Pearl River Delta Region, where terminal productions and software research and development activities are being executed. This conglomeration of GPS natured companies can allow each company to tap into existing resources in time to come. Despite the obstacles ahead, the market for GPS operations has immense potentials.