Current and Potential Current and Potential Economic Benefits of GPSEconomic Benefits of GPS

Current and Potential Current and Potential Economic Benefits of GPSEconomic Benefits of GPS

Joseph H. BogosianJoseph H. BogosianDeputy Assistant Secretary Deputy Assistant Secretary for Transportation and Machinery for Transportation and MachineryInternational Trade AdministrationInternational Trade AdministrationU.S. Department of CommerceU.S. Department of Commerce

December 2003December 2003

Why the Commerce Why the Commerce Department?Department?

• Primary mission: Primary mission: promote commercial promote commercial market growth and market growth and tradetrade

• Largest constituency of Largest constituency of GPS usersGPS users

• National Continuously National Continuously Operating Reference Operating Reference System (CORS)System (CORS)

• Radio spectrum Radio spectrum authorityauthority

Agriculture

Commerce State

Interior

NASAJoint Chiefs of Staff

Interagency GPS Executive BoardInteragency GPS Executive Board

Defense Transportation

U.S. Policy Promotes U.S. Policy Promotes Global Market GrowthGlobal Market Growth

• Free signalsFree signals• Open documentationOpen documentation• No licensing feesNo licensing fees• StandardizationStandardization• Selective Availability endedSelective Availability ended• ModernizationModernization

Commerce Department Roles in Commerce Department Roles in Fostering GPS Market GrowthFostering GPS Market Growth

• Promote U.S. GPS policyPromote U.S. GPS policy• Prevent/eliminate trade barriersPrevent/eliminate trade barriers• Publish market statisticsPublish market statistics• Keep track of industryKeep track of industry• Promote opportunities for market Promote opportunities for market

developmentdevelopment• Represent industry within USGRepresent industry within USG

Commercial Applications Commercial Applications Dominate the GPS MarketDominate the GPS Market

35%

22%

13%5%

16%

5%

2%2%

Car Navigation

Consumer

Tracking/MachineControlOriginal EquipmentManufacturingSurvey/Mapping

Aviation

Marine

Military

2000 Revenues from GPS Equipment Sales2000 Revenues from GPS Equipment Sales

Source: DOC, 1998Source: DOC, 1998

0

1

2

3

4

5

6

7

8

9

10

1996 1997 1998 1999 2000 2001 2002

U.S. Non-U.S.

Worldwide GPS Hardware Sales Worldwide GPS Hardware Sales Exceed $9 Billion Per YearExceed $9 Billion Per Year

$B

illion

s

(Projected)

Source: DOC, 2001Source: DOC, 2001

GPS Sales by Geographic RegionGPS Sales by Geographic Region

  1998 1998 

AsiaAsia2%2%OtherOther

1%1%

JapanJapan47%47%

U.S.U.S.32%32%

EuropeEurope18%18%

  2003 2003 

AsiaAsia2%2%

OtherOther1%1%

JapanJapan44%44%

U.S.U.S.30%30%

EuropeEurope23%23%

Revenues from Buyers in Different RegionsRevenues from Buyers in Different Regions

Source: DOC, 1998Source: DOC, 1998

Current Uses of GPS TechnologyCurrent Uses of GPS Technology• TransportationTransportation

– AutomotiveAutomotive– RailRail– MaritimeMaritime– AviationAviation– SpaceSpace

• IndustryIndustry– AgricultureAgriculture– ConstructionConstruction– E-Commerce/FinanceE-Commerce/Finance– Electric PowerElectric Power– EngineeringEngineering– FishingFishing– ForestryForestry– ManufacturingManufacturing– MiningMining– Oil & GasOil & Gas– TelecommunicationsTelecommunications

• GeographyGeography– SurveyingSurveying– MappingMapping– GeodesyGeodesy– Geographic Information Geographic Information

SystemsSystems– Land Use PlanningLand Use Planning

• RecreationRecreation– Consumer ElectronicsConsumer Electronics– Hiking/GeocachingHiking/Geocaching– Boating/FishingBoating/Fishing– SportsSports– TourismTourism

• Science & EnvironmentScience & Environment– Weather ForecastingWeather Forecasting– Pollution MonitoringPollution Monitoring– Ecology & Wilderness Ecology & Wilderness

ConservationConservation– Toxic Waste/Oil Spill CleanupToxic Waste/Oil Spill Cleanup– Animal BehaviorAnimal Behavior– Disease ControlDisease Control– Geological Change Geological Change

MonitoringMonitoring– ArchaeologyArchaeology– Time TransferTime Transfer

• MilitaryMilitary– Force DeploymentForce Deployment– Logistical SupportLogistical Support– Vehicle NavigationVehicle Navigation– Smart MunitionsSmart Munitions

New Commercial Applications New Commercial Applications Are Developed Every DayAre Developed Every Day

• Open pit miningOpen pit mining• Child safetyChild safety• Automatic snowplow Automatic snowplow

guidanceguidance• Spacecraft controlSpacecraft control• Power grid Power grid

managementmanagement

Huge Potential Exists in the Huge Potential Exists in the Market for Value Added Market for Value Added

ServicesServices

• Software developmentSoftware development• Embedded Embedded

applicationsapplications• Localized GIS Localized GIS

databasesdatabases• Internet integrationInternet integration• Wireless marketsWireless markets• Location-Based Location-Based

ServicesServices

GPS Modernization: DOC RolesGPS Modernization: DOC Roles

• Helped collect and advocate civilian user Helped collect and advocate civilian user needs for the future GPS serviceneeds for the future GPS service

• Early proponent of three civil signalsEarly proponent of three civil signals• Participated in the design and frequency Participated in the design and frequency

selection for the two new civil signalsselection for the two new civil signals• Led studies and analyses demonstrating Led studies and analyses demonstrating

the economic benefits of GPS the economic benefits of GPS modernizationmodernization

• Endorsed high-level recommendations to Endorsed high-level recommendations to the White House to deactivate SA and the White House to deactivate SA and accelerate implementation of civilian accelerate implementation of civilian capabilitiescapabilities

• Participated in Congressional outreachParticipated in Congressional outreach

Cooperation with Europe:Cooperation with Europe:Commercial Issues at StakeCommercial Issues at Stake

• Compatibility/InteroperabilityCompatibility/Interoperability• NondiscriminationNondiscrimination

– Access to Galileo signal specificationsAccess to Galileo signal specifications– Access to marketsAccess to markets

United States GPS PolicyUnited States GPS Policy

““Our goals are to:Our goals are to:

……Encourage private sector Encourage private sector investment in and use of U.S. investment in and use of U.S. GPS technologies and services.”GPS technologies and services.”

““Our goals are to:Our goals are to:

……Encourage private sector Encourage private sector investment in and use of U.S. investment in and use of U.S. GPS technologies and services.”GPS technologies and services.”

For Further InformationFor Further Information

IGEB Executive SecretariatIGEB Executive SecretariatU.S. Department of CommerceU.S. Department of Commerce

www.igeb.govwww.igeb.govExecSec@igeb.govExecSec@igeb.gov

(202) 482-5809(202) 482-5809