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Study: Market For Internet Access Devices Poised to Expand

16 Jan, 2002 By: Hive News

The worldwide market for Internet Access devices (personal computers, mobile phones, Internet set top boxes and Internet and smart appliances) will grow at an overall annual rate of 41.6 percent in unit terms between 2000 and 2005, according to research from Cahners In-Stat.

"Despite our optimistic forecast for this market, there are still several factors affecting all of its

individual segments," said Cindy Wolf, an analyst with In-Stat/MDR. "In the coming years many of these product segments will face increased competition from each other as device functionality converges.''

The PC and mobile phone segments comprise just over 93 percent of the industry and will continue to represent the majority throughout the forecast period. While the PC and mobile phone segments will have the greatest unit shipments, smart appliances will have the highest Compound Annual Growth Rate (CAGR) at 100.8 percent.

Other observations in the survey include:

* Internet set top boxes are confronting challenges in broadband penetration, consumer education, and operator business models.

* The Internet appliance market has seen the exit of many players primarily due to price and application issues, but there appear to be opportunities in vertical markets.

* New products and operating systems will stimulate demand for personal computing device in the coming years, despite weak sales in 2001.

* Security fears, price concerns and the lack of compelling applications make consumers hesitant to switch to Internet-enabled phones.

* Lack of standards, high prices and poor consumer education on how the products add value are hampering the smart appliance market.

The report, "Forecast and Analysis of the Worldwide Internet Access Device Market: 2000-2005" analyzes and forecasts the worldwide Internet Access Device Industry.

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