The Industrial Economics & Knowledge Center (IEK) of Taiwan's Industrial Technology and Research Institute (ITRI) estimates worldwide GPS production volume in 2005 at 101.30 million units. This will mean a 53 percent growth from 66 million units made in 2004. Another 41 percent growth in output is projected by the IEK for 2006, during which output could reach 143.20 million units.
Taiwan and mainland China currently account for a small percentage of the worldwide production volume for GPS devices, but a steady increase in market share is forthcoming as makers boost their output and export volumes to further engage the overseas markets. Combined GPS output from these supply markets is expected to account for at least 7.37 percent of the worldwide output for 2005.
Data from the IEK place Taiwan's GPS production in 2005 at 8.64 million units valued at $1.46 billion. This represents a 47 percent output growth from 2004. Mainland China's production value is expected to reach $1.28 billion in 2005, and $1.62 billion in 2006, according to estimates from the China Space magazine.
Taiwan has about 100 GPS device manufacturers, of which 24 are covered in this report. Mainland China has 30 GPS device manufacturers, five of which are also featured in this report.
Combined GPS production of surveyed Taiwan and mainland China suppliers in this report is set to grow by 47 percent in 2005 to reach 7.46 million units. Aggregate exports are expected to rise by 53 percent to reach at least 6.45 million units.
Production
• Taipei and Hsinchu are the main manufacturing hubs in Taiwan. Shenzhen in Guangdong province is the key production center in mainland China.
• Taiwan has been leading GPS product development and production in Greater China. Taiwan-based companies in this report produced 4.96 million GPS devices in 2004. They are projecting a 44 increase in output to reach 7.14 million units by end-2005.
• Mainland China-based companies produced 136,000 GPS devices in 2004. They are projecting a 138.97 percent increase in output to reach 325,000 units by end-2005.
Exports
• Profiled Taiwan makers exported at least 4.16 million GPS products in 2004, or 84 percent of their total output. In 2005, the makers are targeting an export volume of at least 6.25 million units or 88 percent of their output for the same year. The export growth rate is 50 percent.
• Profiled mainland China makers exported 51,000 GPS products in 2004, which is equivalent to 38 percent of their total output. Makers are expecting to export 63 percent or at least 203,200 units in 2005. The export growth rate is 298.43 percent.
• Western Europe and North America are the key GPS export markets for Taiwan-based makers. Mainland China makers export mostly to Eastern Europe and Southeast Asia.
Industry Overview
The worldwide global positioning system (GPS) market grew by 53 percent in 2005 to reach a production volume of 101.3 million units. Another 41 percent growth in production volume is projected for 2006, during which the output is expected to reach 143.2 million units, based on data from the Industrial Economics & Knowledge Center (IEK) of Taiwan's Industrial Technology Research Institute (ITRI).
Combined production from Taiwan based and mainland China-based companies covered in this report will account for 7.37 percent of the worldwide production in 2005. The projected output volume for 2005 from companies covered is at least 7.46 million GPS products. Their projected export volume is 6.45 million GPS products.
The IEK estimates Taiwan's production volume in 2005 at 8.64 million units, 8.53 percent of the worldwide production. In 2006, the IEK predicts that Taiwan will account for 8.15 percent of the worldwide GPS production.
The IEK projects a growth of 47 percent in production during 2005 from 5.88 million units of GPS products made in 2004. Taiwan GPS makers produced 5.88 million GPS products in 2003. Between 2003 and 2004, Taiwan makers increased their production volume by 79 percent from 3.29 million units in 2003.
In terms of production value, the IEK predicts Taiwan's GPS market to be valued at US$1.46 billion by the end of 2005. This will rise to US$1.68 billion in 2006.
The IEK projects continuous growth in both production volume and value worldwide, although the rate of growth will slowly decline. Worldwide production of GPS products rose by 59 percent in 2004 with a total output volume of 66 million units, against an output of 41.5 million GPS products in 2003. The rapid production expansion over recent years is the main reason for the high growth rate. As worldwide supply stabilizes to meet market demand, production volume for the current generation of GPS applications will slow down, and makers will shift to advanced GPS products.
In terms of shipment value, the IEK estimates a worldwide market value of US$21.79 million by the end of 2005. This is equivalent to an 18 percent growth over the shipment value of US$18.49 million in 2004. The IEK forecasts shipment value in 2006 to total US$25.28 million, an increase in growth of 16 percent.
Market research firm ABI Research projects that emerging applications, plus growth in existing markets, will drive rapid growth in the coming years. The company projects the GPS market will be valued at US$22 billion by 2008 and US$757 billion by 2017.
There will be 18 million units of GPS products by 2008, with nearly 8 million units being sold in the Asia- Pacific, 5 million units in Europe and 3 million units in North America.
Supplier Profile
Advantech Co. Ltd
Advantech Co. Ltd delivers embedded and applied computing and network appliances, and industrial computing and automation devices. Established in 1983, Advantech caters mostly to system integrators through value-added solutions and services. In the ePlatform services market, Adventech offers comprehensive system integration hardware, software, customer-driven service, global logistics support and back office e-business infrastructure.
The company's total sales for all products totaled US$260 million in 2004. This is projected to grow to US$307 million by end-2005 and to US$368 million in 2006. GPS products accounted for 10 percent of the company's total sales from all products in 2004 with a sales revenue of US$25.9 million. The company is projecting a 20 percent growth in GPS product sales this year to reach a sales revenue of US$31.2 million by the end of 2005. GPS annual revenue is projected to further rise by 2006, with a target value of US$37.4 million.
Over 95 percent of Advantech's GPS product sales come from exports. The company reported a total export revenue of US$25 million in 2004. It is projecting export revenue to reach US$30 million by end-2005, equivalent to a 20 percent growth. Another 20 percent growth in the company's export performance is projected for 2006, during which the annual export revenue is projected to increase to US$36 million.
Advantech operates an extensive support, sales and marketing network in 16 countries and 30 major cities. Advantech complements its design strengths with three production centers in mainland China and Taiwan.
The export market of Advantech is distributed throughout North America, Western Europe, East Asia including Japan and South Korea, and South Asia including India. These regions account for 28 percent, 21 percent, 26 percent and 5 percent of the company’s sales revenues, respectively.
Advantech accepts OEM and ODM projects. Most of OEM and ODM orders revolve around embedded and applied computing, industrial and network computing, and industrial automation products and solutions.
Manufacturing Capability
The company is based in Neihu, Taipei, Taiwan and maintains a production facility in Taipei. Its Taipei factory covers a total area of 15,744sqm and is equipped with five production lines. Its Taiwan workforce increased from 1,200 in 2004 to 1,500 in 2005, of which 600 are production workers. The factory handles cosmetic design, electronic circuit subassembly and final assembly processes in-house. Mold making, plastic injection molding, painting and silk screening and sensor/detector module production processes are done by subcontractors.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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