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TomTom lost share in Europe’s in-vehicle navigation software market

TomTom has maintained its leadership in Europe’s in-vehicle navigation software market in 2024 with a 14 percent share, according to Counterpoint’s latest data.

Navigation software market Europe 2024
Navigation software market Europe 2024

Despite retaining the lead in the in-vehicle navigation software market, TomTom’s share declined by 14 percent year-over-year, a setback primarily driven by a 17 percent drop in sales from one of its key European customers.

However, TomTom managed to partially offset this decline through strategic wins, including new design contracts and vehicle model launches under its alliance with Volkswagen’s CARIAD division, alongside expanding collaborations with Chinese automakers entering or growing in the European market.

Following TomTom, Joynext and Elektrobit secured the second and third positions with 13 percent and 12 percent market shares, respectively, reflecting a stable competitive structure among the top players, the report said.

The overall European in-vehicle navigation market contracted in 2024 compared to the previous year, largely due to a slowdown in electric vehicle (EV) sales. As EV adoption is closely linked to in-vehicle navigation integration — owing to features such as EV routing and charge point suggestions — the downturn in EV momentum directly impacted the navigation software segment.

However, the in-vehicle navigation software market also showed signs of broadening, with an increase in the number of vehicle models equipped with built-in navigation systems, including more affordable and smaller cars. This expansion reflects OEMs’ efforts to make connected services more accessible across price tiers.

Google emerged as a significant gainer during this period, growing its market share to 6 percent on the back of a 34 percent year-on-year increase. This surge was fueled by a rollout of Google Automotive Services (GAS), especially across prominent automotive brands such as Renault, Volvo, Cadillac, and Polestar. The integration of GAS reflects a growing preference among automakers for ecosystem-based navigation and infotainment solutions that offer native access to apps and services familiar to consumers.

Looking ahead, the European in-vehicle navigation market is expected to recover as EV sales regain momentum. Key growth drivers will include the continued demand for connected car features, integration of ADAS (advanced driver-assistance systems), and growing consumer expectations for intelligent, seamless navigation experiences.

The in-vehicle navigation software market will likely remain fragmented, with leading players prioritizing innovation, software modularity, and strategic partnerships to protect their share. New entrants such as Mapbox are poised to intensify competition with flexible, developer-friendly platforms and quicker go-to-market capabilities, appealing particularly to OEMs looking for customizable and scalable solutions.

Artificial intelligence will play a transformative role in shaping the next wave of in-vehicle navigation systems. AI-driven features such as predictive EV routing, personalized travel recommendations, and dynamic route adjustments based on user preferences and vehicle context are expected to become mainstream.

Counterpoint’s Vice President of Research Peter Richardson said AI integration marks the next competitive frontier for both legacy navigation software providers like HERE and TomTom, and Tier-1 technology suppliers such as Harman and Joynext. This evolution toward AI-powered, user-centric navigation solutions signals a broader shift in the automotive software space, where the in-vehicle experience is becoming as critical as the driving performance itself.

InfotechLead.com News Desk

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