If you like to track what company’s technology is used where, GPS World offers an interesting take on the OEM market for Global Navigation Satellite System (GNSS) business.
Industry consultant Rob Lorimer writes about the future of three competing OEM business models.
One. The first model posits that core OEM GNSS technology (at board or chip level) is designed in-house and released to market-focused internal divisions and JV’s at undisclosed transfer pricing. The same products (or variants of it) are also released via an OEM business unit for external customers. Examples of this model are Trimble (who market their professional OEM GNSS boards via Pacific Crest) and Topcon.
Two. The second model resembles the first, but the supplier and customer are slightly more at arm’s length, such as the cases of NovAtel supplying Leica (both companies belonging to the Hexagon group) and Navcom supplying Deere (Navcom now a Deere company).
Three. In contrast to the first two models, the third model is based on relationships between unrelated parties. This allows for a wide range of commercial terms and conditions covering length of contract, sole/multiple supplier status, exclusivity, and so on. Examples of existing open market arrangements include Septentrio supplying Veripos and Hemisphere GPS supplying Farmscan.
Looking at the precision agriculture side of the biz, Lorimer looks at three professional OEM GNSS suppliers working with 70% of the global machinery manufacturers. You have Trimble‘s JV with Caterpillar and an OEM deal with CNH–supplying two of the top four machinery manufacturers. Then there’s Topcon‘s relationship with AGCO and Komatsu. And you have Navcom supplying Deere.
To learn more details about his scenarios on how this industry may or may not shake out…read more.