North America GNSS Chip Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Device (Smartphones, Tablets, Personal Navigation Devices, In-Vehicle Systems, and Other Devices), Application (Navi

The North America GNSS (Global Navigation Satellite System) chip market is projected to grow significantly, reaching an estimated US$ 2,766.38 million by 2031, up from US$ 1,605.01 million in 2024. This growth represents a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

Executive Summary and Market Analysis

The North American GNSS chip market is primarily driven by the United States, Canada, and Mexico, which are key contributors to the region's economy. A major factor propelling the demand for GNSS chips is the rapid advancement in technology, particularly in the realm of unmanned aerial vehicles (UAVs). Government initiatives aimed at promoting UAV adoption are also crucial. For instance, in January 2023, the U.S. Department of Defense announced plans to invest over US$ 2.6 billion in unmanned systems, with at least 29 programs focused on procuring unmanned aircraft systems (UAS). The Mitchell Institute for Aerospace Studies highlighted the military's potential to leverage UAVs for various applications, including cargo transport and combat operations. This shift towards advanced autonomous systems is expected to significantly increase the demand for GNSS chips, as the proliferation of UAVs will enhance the need for navigation solutions.

Additionally, the rise of connected and autonomous vehicles is another driving force behind the GNSS chip market. The integration of GNSS chips into mobile devices and vehicles has greatly improved connectivity, navigation, communication, and entertainment capabilities. For example, in December 2023, TomTom and Microsoft introduced a generative AI solution for connected vehicles, enhancing voice interaction with infotainment systems and location services. Similarly, at the MWC Barcelona 2023, HARMAN collaborated with the American Center for Mobility to test real-world applications of vehicle-to-everything (V2X) technology, showcasing the potential for global connectivity among people, vehicles, and infrastructure. The increasing involvement of major players like Qualcomm and Intel is also expected to drive market growth.

Market Segmentation Analysis

The North America GNSS chip market can be segmented based on device type, application, and vertical.

1. Device Segmentation: The market is divided into smartphones, tablets, personal navigation devices, in-vehicle systems, and others. In 2024, smartphones are anticipated to hold the largest market share.
2. Application Segmentation: The applications of GNSS chips include navigation and location-based services, mapping and surveying, telematics, timing and synchronization, among others. The navigation and location-based services segment is expected to dominate the market in 2024.
3. Vertical Segmentation: The market is categorized into consumer electronics, automotive and transportation, military and defense, marine, and others. The consumer electronics segment is projected to have the largest share in 2024.

Market Outlook

Technological advancements in UAVs and unmanned ground vehicles (UGVs) are rapidly evolving. The demand for these vehicles is expected to rise due to innovations such as sense-and-avoid systems, artificial intelligence, and cloud computing. The integration of AI into UGVs and UAVs enhances their capabilities in navigation, data capture, and analysis, often without human intervention. GNSS chips play a critical role in providing precise real-time positioning information, which is essential for applications like surveying, search and rescue, autonomous delivery, mapping, and military operations.

UGVs and UAVs are increasingly utilized for tasks such as payload delivery, traffic monitoring, and surveillance. While these technologies are not fully commercialized globally due to regulatory constraints, countries like Canada, the U.S., and the U.K. allow for commercial UAV operations under specific permits. The growing reliance on GNSS technology for tracking and navigation in UGVs and UAVs is expected to be a significant trend in the GNSS chip market during the forecast period. As these vehicles become more autonomous, the need for human oversight diminishes, leading to more efficient and safer operations. High-precision GNSS solutions are vital for effective navigation in both UAVs and UGVs, ensuring stability, obstacle avoidance, and optimized routes.

Country Insights

The North American GNSS chip market is primarily composed of the U.S., Canada, and Mexico, with the U.S. holding the largest market share in 2024. Location-based services (LBS) in the U.S. are often more accurate than regulatory requirements for emergency services, prompting cellular manufacturers to focus on enhancing LBS capabilities through various strategies. For instance, in June 2023, the Air Force Research Laboratory partnered with Luminous Cyber Corp. to develop a resilient GPS alternative for areas with unreliable coverage. The U.S. Department of Defense continues to enhance the Navstar GPS system to meet military demands for accurate positioning and timing.

Company Profiles

Key players in the North America GNSS chip market include Qualcomm Inc., Broadcom Inc., Septentrio NV, Trimble Inc., Furuno Electric Co. Ltd., MediaTek Inc., STMicroelectronics NV, Skyworks Solutions Inc., u-blox Holding AG, and Quectel Wireless Solutions Co. Ltd. These companies are pursuing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative solutions to consumers. Show more