TomTom Led the European Navigation Software Market in 1H24

The navigation software market is quite fragmented currently, with more than 10 vendors serving the key automotive OEMs outside of China, mostly based in North America and Europe, according to Counterpoint Research. In Europe, TomTom led the in-vehicle navigation software market in the first half of 2024 with a 15% share, followed by Joynext and Elektrobit.

“TomTom’s success can be attributed to its modular navigation software solutions, which allow OEMs to customize their navigation systems easily to align the user interface with their branding and consumer preferences. Volkswagen Group recently started implementing a TomTom-powered navigation system in its vehicles. This is expected to become a significant contributor to TomTom's growth in Europe in 2025 and beyond. Navigation software is a fragmented market. Tier-1 players mainly supplying infotainment units to OEMs often offer navigation software as well. Such players include Joynext, Bosch, Aisin, and Harman,” said Mohit Sharma, Research Analyst at Counterpoint Research.

As more consumers choose vehicles with built-in navigation systems, manufacturers are integrating these into their new models as standard features. Besides, the increasing adoption of electric vehicles and ADAS is further driving the growth of in-car navigation systems. Europe’s in-car navigation sales grew 4% QoQ in 2Q24 with countries with high EV adoption, like Norway and Sweden, leading this sequential growth.

In recent years, in-vehicle navigation has undergone significant enhancements, particularly in map update processes, UI, and EV services. Major automakers have started utilizing high-performance computing chips from companies like Qualcomm, NVIDIA,  and AMD.  These advancements have also enabled over-the-air (OTA) map updates, more realistic navigation with 3D rendering capabilities, and AI-driven EV services to improve the overall user experience. Another important trend that could shape in-vehicle navigation market dynamics is the growing presence of Chinese car brands in Europe. This presents significant opportunities for Western in-vehicle navigation system vendors to collaborate with these automakers.

“New entrants like Mapbox and Google are gaining traction as vehicle brands like Renault, Volvo, and Polestar continue to roll out new models based on Google Automotive Services (GAS). Navigation software is a highly competitive market as it includes mapping, Tier-1 automotive, and pure navigation players. Meanwhile, in China, map providers such as Baidu, Amap, and Tencent lack comprehensive map coverage abroad. This limitation positions companies like TomTom and HERE favorably for partnerships with Chinese automotive OEMs, especially since Google is unlikely to be an option for these firms,” said Peter Richardson, Vice President at Counterpoint Research.

Going forward, AI and GenAI will revolutionize the way navigation and location services are consumed. They provide a more intuitive and natural method for users to access real-time information, receive personalized route suggestions, and engage with location-centric data. For instance, in 2024, several European brands under Stellantis and Volkswagen introduced vehicles equipped with GenAI-powered voice assistants.