The number of mobile users downloading navigation routes using mobile phones is projected to grow with a compound annual growth rate (CAGR) of 27.9 percent to touch 70 million in 2014, from its current 16 million users, revealed a research report by Berg Insight.

According to the report, the growth in the adoption of navigation routes will be propelled chiefly by the introduction of GPS-technology in smartphone handsets and bundling of navigation applications with mobile devices or service plans.

The introduction of the first GPS enabled handset in Europe in 2007 saw a sudden surge in number of handset models from mobile phone manufactures, paving way for widespread adoption of mobile navigation services in the continent.

The US market on the other hand has continued to grow to a level of 6 million active subscribers to mobile navigation services in Q2, 2008. The slated launch of GPS enabled handsets by the GSM operators AT&T and T-Mobile USA are expected to drive further growth in 2009.

While commenting further, André Malm, telecom analyst, Berg Insight said, “The mobile industry is now starting to reap the benefits from the introduction of GPS enabled handsets. However, most mobile navigation users only use the service during a free trial period. The key challenge will be to convert these test-users into paying subscribers.”