With availability of cheap alternatives to official navigation systems fuelling consumer demand, there's bound to be a few finding their way into Christmas stockings. But a new report says car manufacturers must look to their strategies if they are to keep up with what the buyers want.

IN the past decade, navigation systems have moved from being expensive, niche products to mass-market items stocked on supermarket shelves.

As consumers have become more sophisticated in their understanding of electronic gadgets, the market for portable navigation equipment has soared.

Independent telematics specialist SBD Ltd predicts the European market will top six million units in 2005.

SBD has published a report analysing the market and technical trends and forecasting continued growth.

As sales of portable systems soar, the report emphasises the need for car manufacturers to change their approach if they are to increase the number of vehicles sold with embedded, factory-fitted satellite navigation units.

At present only around 10% of new cars in Europe are sold with satellite navigation. Customer take-up is low, given that the equipment is typically offered as a relatively high cost option, or provided as standard principally on premium or luxury grade models.If present trends continue, fitment rates could reach a modest 12% in 2006.

It contrasts this with the performance of portable systems, which have doubled sales levels in 2004-2005.

Rapid growth has been fuelled by the success of new personal navigation devices (PNDs), which are smartly designed, simple to use and competitively priced.

The portable market also includes personal digital assistants (PDAs) and newly introduced Smart Phones.

SBDs report anticipates PNDs will claim more than 50% of the European portable market as more new products reach stores and prices continue to fall.

David McClure, SBD head of Telematics, said: "If car makers are willing to adopt more cohesive marketing and technical strategies, we think there is an opportunity for fitment rates on new cars to rise as high as 30% by 2008-2009. Manufacturers have an opportunity to turn increased customer awareness into increased sales of embedded systems, but it requires a fresh approach, in the way they position the equipment within their model ranges and the way it is sold on the showroom floor."

There are signs that manufacturers are getting the message. Recently, Toyota announced that it was teaming up with a maker of low-cost portable systems, to provide satellite navigation for its entry-level Aygo instead of adopting the in-house Toyota system.