In this first subscription update, the recreational GPS market is segmented into three categories: Marine, land (outdoor), and aviation GPS applications. The market applications for the recreational GPS markets have been relatively stagnant since the late eighties, however, price and technology have not. Physical size, along with price, have steadily decreased while functionality continues to improve. Economies of scale and fierce competition have pushed prices to significantly lower levels.

According to the new strategic research from Frost & Sullivan, ``North American Global Positioning Satellites Applications Market,'' the total North American application markets are estimated to grow from $366.2 million in 1996 to $3.5 billion by the year 2003.

``The competitive make-up of the recreational marine and land segments, naturally are very similar,'' said Frost & Sullivan's Defense/Aerospace Industry Analyst Gary Leikin. ``Although some of the market participants originally made a niche in either marine or land segments, ongoing design refinement and general market acceptance has facilitated cross-segment usage and adoption.

``GPS will save thousands of lives, navigate countless vehicles, and save billions of dollars. It will make the dreams of intelligent railroads, highways and airways a reality. Just as importantly, the accurate timing supplied by GPS will make the global computer networks envisioned today possible in the future,'' said Leikin. ``A cell phone with a GPS receiver becomes the best emergency tool ever devised for the driver in distress. A fleet equipped with a GPS receiver becomes traceable and manageable to a degree previously unimagined, saving millions of dollars in lost time and inventory management.''

In today's GPS market, the majority of market revenues are generated from established markets such as survey and marine navigation. But, new GPS markets such as automobile navigation, precision agriculture and ``smart'' weapons are anticipated to emerge to mass market status over the forecast period. Complimentary to this trend is the continuing decline in prices, driven by silicone shrinkage and scale production, for both GPS itself and for complimentary networking, communications and software technologies. This serves to open markets by sinking prices of GPS to lower levels, enabling new GPS markets to emerge along the way.

Naturally, there is considerable impact in the competitive patterns of the GPS markets, as both the technological performance and pricing trends are accelerating. That the basic GPS prices continue to fall is a factor for which every market participant in the GPS market must take into account. There are a variety of companies participating in the market ranging from large aerospace companies and consumer electronic companies, to small niche players and venture capital-backed start-ups. They are all significant participants and contributors to the evolving GPS market.

The GPS applications market sits at a fortuitous juncture of many exciting technologies and markets. As such, these markets will see substantial growth. In addition to the rapid growth in the currently viable GPS markets, there will be a steady stream of new applications markets and technologies over the coming years. GPS is arguably the most subtle technological revolution of the century. Its impacts are being felt in an ever expanding circle of markets and this will continue throughout the forecast period.

Markets analyzed in this study include Automated Vehicle Location (AVL), Land-Based GPS, VFR Aircraft, IFR & GPS Aviation, GPS Precision Agriculture, Survey & Scientific, Automobile Navigation, Military Munitions, Military Navigation & Location, Commercial Marine Survey, Commercial Marine Naivgation, and Timing.

Frost & Sullivan is an international marketing consulting company that monitors the aerospace industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5187-22 ``World Air Traffic Control Equipment Markets,'' and to support industry participants with customized consulting needs.