SpatialNews Press Release

Terrorism Attacks Accelerate Interest in GPS Applications, Says Allied Business Intelligence

www.alliedworld.com

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OYSTER BAY, N.Y.--Dec. 3, 2001--Global positioning system (GPS) applications have attracted increased interest in the wake of the terrorism attacks of 2001.

American society has changed from one that is casual toward these kinds of threats to one that is on the alert for them. GPS will play an increasingly important role in this new "alert" society. ABI's report, "GPS World Markets 2002: Prospects for Satellite Navigation and Locator Applications," addresses these concerns and offers a thorough examination of the marketplace.

One of the most important of the emerging GPS initiatives is the wireless E911 mandate requiring cellular carriers to link caller location to an emergency call. Although network-based solutions are being developed, most carriers will likely adopt handset-based GPS functionality. In addition, other GPS-based "people-tracking" devices are being developed that are as simple as a pendant tucked into a child's pocket or backpack.

GPS is used for a wide variety of applications by many different industries. Besides the military, end uses fall into nine primary categories: aviation, marine, people tracking, recreation, surveying/mapping, timing, communications, in-vehicle navigation, and vehicle/freight tracking; the latter three account for two-thirds of total revenue. Primary market drivers and major players are listed for each segment.

Several alternatives to GPS exist, including GLONASS, the Russian system, and Galileo, the proposed European alternative. Their influence on the overall marketplace is discussed along with their long-term viability.

The GPS industry is not near maturity. The overall market continues to grow at a fast pace, with new market segments and new generations of products constantly evolving. The life cycle of some of the industry's products is very short because new technologies displace the old often in less than six months. The need to capture market share early on is essential.

According to ABI analyst Bill Britton, the world market for GPS equipment will stand at $34 billion by 2006 and as much as $41 billion should the world economies recover from their current slump. The U.S. and Japan will continue their leadership roles in system development and manufacture.

Allied Business Intelligence, Inc. is an Oyster Bay, NY-based technology research think tank that publishes strategic research on the broadband, wireless, electronics, networking, and energy industries. Details are available at www.alliedworld.com or by calling 516/628-3113.

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