Google Maps makes inroads for Navigation Software

  Google Maps making inroads for Navigation Software : Making the Competition tough   

The increasing adoption of electric vehicles (EVs) and advanced driver assistance (ADAS) features is driving the growth of built-in navigation systems in cars. Navigation helps EV drivers plan the optimal route by considering battery range and charging station locations. Besides, navigation helps ensure safety by giving drivers information about the weather, speed limits and traffic conditions. In terms of sales volume, Germany, the UK and France are the leading countries in built-in car navigation. But in terms of the share of such cars in total car sales, Norway leads, followed by the Netherlands and Germany. Volkswagen Group, Stellantis and Renault-Nissan are the top three automotive groups in terms of built-in car navigation sales. EV players like Tesla, NIO and Xpeng offer navigation on all models.

The battle in the navigation space happens not only at the mobile level but also from a pre-loaded software perspective, as companies like Google, HERE and TomTom are fighting to convince carmakers to adopt their solutions. HERE and TomTom are already leading the automotive space, but Google and Google Maps are rapidly gaining traction. HERE is leading the European market in terms of licensing its map data. HERE, with a strong presence in the automotive industry, has a 66% share in Europe’s built-in car navigation map data market. The company licenses its map data to other companies to build applications and services. HERE offers its navigation services to OEMs like BMW and Mercedes. Chinese brands such as FAW Hongqi and SAIC, which are expanding their sales into Europe, have partnered with HERE for navigation data.

TomTom is in the second position in the European market with a 22.1% share. Last year marked the company’s second pivotal year after 2009, when it decided to sell its navigation services to automakers directly after the decline of its GPS standalone device business. In 2022, the company announced a new map platform besides rebranding itself. TomTom has long-standing partnerships with Stellantis, Renault and other car manufacturers. Another notable win for TomTom is a partnership with the Foxconn-led MIH Consortium to increase its presence in next-generation smart mobility vehicles.

Google’s share in the in-car navigation map data licensing market continues to increase. Google’s entry into in-vehicle navigation services has enlivened the competition in the European market. For years, the market has seen the duopoly of legacy players HERE and TomTom. Google is trying to catch up with traditional navigation providers as it continues to expand its automotive offerings like EV routing and HD maps. In the latest blow to the navigation software world, Google Maps could make its way to Hyundai and Kia cars sold worldwide. Hyundai Autoever, the South Koreans' unit in charge of navigation software, has reportedly picked Google for high-definition maps. Hyundai and Kia currently use HERE and TomTom mapping software to power HD maps for Level 3 vehicles. While an announcement has yet to be released, Hyundai adopting Google Maps could also pave the way for the South Korean carmaker to adopt Android Automotive.

Hyundai is becoming more interested in partnerships with tech companies after previously signing a deal with Amazon to bring Alexa into its cars. Alexa is Amazon's digital assistant, and it'll allow Hyundai drivers in the US to interact with the infotainment features, including navigation, with voice commands. Hyundai has previously been rumoured to be involved in advanced talks with iPhone maker Apple for the production of the now-abandoned Apple Car. The South Korean carmaker was in pole position to become a contract manufacturer for Apple, with sources familiar with the matter previously claiming that the Cupertino-based tech giant was days close to signing a collaboration with the carmaker. Apple eventually dropped the talks after Hyundai publicly commented on the development of an Apple Car. The American tech firm is known for its CIA-inspired secrecy concerning new projects.

Also referred to as AAOS, Android Automotive is an embedded operating system developed by Google which provides carmakers with a pre-loaded solution offering easy access to integrated services like Google Maps and Google Assistant. However, automakers can also install Android Automotive without Google Automotive Services, as they are allowed to develop and install their third-party alternatives.

Meanwhile, Hyundai seems to be turning its attention to Google, especially as South Koreans are hoping to become key players in the autonomous vehicle battle. Google Maps could power autonomous cars with accurate maps and frequent updates, and Hyundai hopes that this partnership could pave the way for deeper ties in this direction. Google's foray into the automotive space gained more pace thanks to Android Automotive and Android Auto, both adopted by a growing number of carmakers worldwide. The latter relies on a mobile phone to power the experience, whereas Android Automotive can be pre-installed by the carmaker and customized with a unique look and feel to retain the brand identity. Some cars, like the Tesla do use Google Maps, but Tesla cars are permanently connected to the Internet. In the future, more and more cars will use connected services, but it is expected that the navigation system will still work with or without a cell phone signal.