Two separate mobile navigation software markets, so far split by different delivery methods, are expected to merge within three years to the benefit of consumers and companies, the head of Finnish start-up Navicore said.
Until now companies like Navicore have sold their software directly to consumers, who have to download the files onto their mobile phones, while others like Wayfinder have sold navigation on a cell phone as a service at a monthly fee, usually charged by the mobile operator.
"The two markets will merge into a kind of hybrid in two to three years time," Navicore's new acting Chief Executive Juha Murtopuro told Reuters in an interview.
In January-March, Navicore was the fifth largest player in the European region for navigation software that store maps on the phone, with 6 percent market share of 114,220 units, according to research firm Canalys.
The market leaders are Route 66 and TomTom.
The market for the so-called off board software, sold through telecom operators, was as big, with Jentro, Wayfinder and Israel's Telmap the largest players.
Murtopuro said the hybrid solution, where consumers' maps are updated and they could buy maps to use at holiday destinations for only the weeks needed, would benefit consumers whose map data will always be up to date and cut their spending.
The off board providers are also moving to the increasingly merged market. They will sell bigger packages of maps - consumers will be able to download a map for a full journey, without risk of losing it because of connection drops, he said.
Murtopuro said the demand for mobile navigation was strong. "There are good indications that 2006 will be a strong year for mobile navigation," he said.
"Many firms outside the mobile navigation sector seem to be interested in it. I am sure we will see consolidation in the sector this year and next," he said.
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