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DVD Penetration Forecast Optimistic

17 Dec, 2002 By: Hive News

With manufacturers incorporating DVD playback into an increasing number of consumer electronics products, DVD is everywhere, according to high-tech market research firm In-Stat/MDR's new report DVD, DVD Everywhere, and Not an Opportunity to Miss.

In addition to TV sets, VCRs, cars and home theater systems, in 2002, DVD players have been added to cable set-top boxes and personal video recorders. As a result the DVD player market will hit 84 million units in 2006, the firm reports,.

"DVD player shipments have increased again in 2002, growing by 61 percent [from last year]," said In-Star/MDR senior analyst Michelle Abraham. "The increased form factors and low prices are keeping interest in purchasing DVD players up, though the DVD player market is maturing and the worldwide shipment growth rate is slowing down."

In 2005 and 2006, DVD recorders will replace DVD players as the technology of choice, reaching 32 million units in 2006. As more manufacturers move to produce DVD recorders, pricing will drop to under $400 by the end of 2003, possibly under $300 with fierce competition.

Other conclusions from the new report include:

  • Though growth is slowing in the United States, it will still be the largest region in unit shipments through 2004. The growth rate in Europe will be higher than that of North America through 2005. Europe has been one year behind the U.S., in terms of the market's unit shipment growth rate. China's domestic market will surpass that of the U.S. in unit shipments in 2006.
  • The first blue-laser DVD products are expected in late 2003, but their high prices will put them out of reach for most consumers.
  • DVD recorders will ship over one million units in 2002, which is just the beginning as the market will experience triple-digit unit shipment growth rates through 2005.

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