The worldwide market for internet access devices – PCs, mobile telephones, set top boxes and so on – will grow at an annual rate of 41.6% between 2000 and 2005, according to a report from Cahners In-Stat/MDR released this month.
The research firm reports that the PC and mobile phone devices currently account for just over 93% of the industry and will continue to represent the majority throughout the forecast period. However, whilst PCs and mobile phones will continue to be the most popular in gross unit sales, ‘smart appliances’ will have the highest compound annual growth rate (CAGR) at 100.8%.
“Despite our optimistic forecast for this market, there are still several factors affecting all of its individual segments,” says 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 report also found that consumers are hesitant to switch to internet-enabled mobile phones ‘due to security fears, price concerns, and a lack of compelling applications.’
Internet set top boxes sales growth is hampered by challenges in broadband penetration (the extent to which the broadband cable infrastructure is laid), consumer education, and operator business models, says In-Stat.
The report, Forecast and Analysis of the Worldwide Internet Access Device Market: 2000-2005, analyses and forecasts the worldwide internet access service industry.
