The global nano GPS chip market is witnessing rapid traction, mainly due to the rising use of GPS tracking devices. Besides, significant technological advances and rising numbers of GPS tracker users for navigation & find the location of vehicles, as well as smart, connected devices, substantiate the market value. The emergence of video telematics has been impacting the market growth positively.
Today, GPS tracking devices are used in several applications, such as detecting vehicle locations & the quality of roads and providing improved mapping facilities. These devices are also used to obtain real-time information on climatic conditions. Citing the increasing use of GPS chips in devices used to track climate changes, MRFR expects the global nano GPS chip market to expand at a notable CAGR during the forecast period (2020-2027).
Nano GPS chips are increasingly used in planes, ships, cars, and compact military devices for navigation purposes. Due to the rising digitization and industrial automation, these chips are witnessing extensive use in industrial and commercial applications, such as locating various devices, etc. The rapid increase in the global economy provides ample opportunities for market expansion.
Increasing usage of mobile phones and GPS technology, alongside advances in communication technologies & analytical capabilities, bolster market revenues. The emergence of 3G/4G and 5G technologies impact market revenues positively. Similarly, the proliferation of autonomous & semi-autonomous vehicles and growth in cloud computing-based vehicle tracking systems boost the market size.
Despite the promising prospects, the market still witnesses challenges related to services and various strategies. Privacy intrusion is a major disadvantage of GPS systems/GPS chips. Also, technological limitations causing failures in GPS and cellular-based trackers are major headwinds. At the same time, high R&D investment requirements challenge market players.
Nano GPS Chips and its Working Mechanism
GPS or Global Positioning System is a credible technology used to track and monitor vehicles and various smart connected devices. In addition to road transportation, to gain quick access to emergency roadside services, prevent vehicle theft, and increase security & security, GPS devices also find their applications in industries such as aviation, law enforcement, banking & finance, health & fitness trackers, and agriculture.
A nano GPS chip is a microchip used in a GPS receiver that receives signals from GPS satellites currently orbiting Earth. With the help of these chips, a GPS tracking device can calculate its position based on the time it takes to receive signals from each satellite. Nano GPS chips can detect even the most intermittent or low signals and transmit the data to computers and mobile phones.
A nano GPS chip works like a usual GPS device, receiving GPS signals from satellites and using wireless connectivity. In addition to tracking down a mobile device or an individual’s movement, these chips are also used to protect valuable assets. These chips demonstrate a high recovery rate in retrieving lost/stolen goods in industrial or commercial applications. Locating items using GPS tracking devices is an effective method commonly used today.
Significant investments are poured to meet R&D requirements to improve nano GPS chip technology, witnessing vast uptake in vehicle security technologies. Also, the growing use of these chips in video telematics, advanced analytics useful in improving vehicle field service management, and fleet management software create vast market demand. Telematics systems provide more information than just vehicle location.
Telematics combine telecommunications and informatics to provide information on drivers & vehicles traveling over high-speed networks and indicate areas for improvement, such as increasing fuel efficiency and reducing accidents. Fleet managers and operators are investing heavily in implementing advanced video telematics to improve safety, operational efficiency, and customer service and thus gain a competitive advantage.
North America is the Largest Market for Nano GPS Chips
Factors such as the rising use of IoT devices & health tracking devices and high disposable income drive the regional market growth. Besides, the increasing popularity of smartphones and smartwatches helping identify and track an individual’s or pet’s location boosts the nano GPS chip market size. Increasing spending on military equipment and R&D investments to improve GPS technology, accelerate the region’s market shares.
Besides, the increase in the automotive sector and the high use of GPS vehicle tracking devices due to rising vehicle theft cases propel the development of the nano GPS chip market. The early adoption of GPS trackers & cloud-based deployment services and rising sales of premium & luxury vehicles in the region escalate the market value. Additionally, the strong presence of notable industry players provides enormous opportunities.
A nano GPS chip makes wearables more efficient with its Micro Hornet tech. Today, wearables are witnessing widespread acceptance; it is because of the capability of this tiny component to communicate with servers and access data. In view of the increasing incidents of kidnapping of children, nano GPS chips are embedded in children’s clothing.
These chips, alongside a SIM card cloud, lead to the correct location of the kidnapped child. With these smart trackers in clothing, missing children can be found, and the information about their location can be sent to a smartphone in real time. On July 14, 2021, Amazon recently announced the development of an Alexa-powered wearable GPS tracking device for kids, allowing parents to track and communicate with kids.
GPS technology has a big impact on the telecom industry and witnesses continually increasing investments from the industry. GPS tracking device providers make vast investments in new product development. For instance, in April 2021, Trucker Tools, a GPS-based smartphone app that tracks freight in real-time, announced the expansion of in-transit visibility for truckload, drayage, and flatbed operators.
Strategies Nano GPS Chip Market Players Follow
The market witnesses several strategic deals, such as partnerships, mergers & acquisitions, collaboration, expansion, and technology launches. Leading industry players make vast investments to drive their research & development activities and expansion plans. The market witnesses relentless innovations and new products, eventually intensifying competition among market players. For instance, on July 05, 2022, Huawei unveiled a smart tag in China with technical similarities to Apple’s AirTag. The Huawei Tag features a GPS module relying on nearby Bluetooth devices to approximate its position, IP67 dust & water resistance, and a long-lasting battery backup. Huawei has included an NFC chip to share owner information and a small speaker to help locate nearby tags.