Internet Access Device Market Continues To Grow.

The market for Internet access devices (including personal computing devices, mobile phones, Internet-enabled set top boxes, Internet appliances, smart appliances and white goods) is expected to grow at an overall annual rate of 28.2%, in terms of units between 2001 and 2006. According to In-Stat/MDR, growth is expected to rise to over 790 million units in 2006 from about 226 million units in 2001. Although the PC and mobile phone segments represent the greatest percentage in terms of unit shipments, Internet appliances, which include Internet terminals and Tablet PCs, will have the highest CAGR over the period, with 74.3%.

“There are various issues that affect the market for Internet access devices,” says Cindy Wolf, an Analyst with the high-tech market research firm. “Some of the most important issues, which vary by device, include, Internet penetration rates, broadband availability, wireless networks, home networking, education, and price. In addition, many of the Internet access device product segments will face increased competition from each other, as device functionality converges in the coming years.”

In-Stat/MDR finds the following significant trends in the Internet access device market:

– Notebook and PDA growth will, by far, outpace growth in the PC category. The Internet-capable PDA market is
poised for growth as the number of products being introduced with integrated functionality increases.

– Internet-capable mobile phones (which include smartphones) are being offered in a variety of forms. Applications are becoming more attractive as network service, operating systems, and displays have been improved to support them.

– Internet-capable set top boxes (both digital cable and video game consoles) are confronted with challenges in broadband penetration, consumer education, and operator business models.

– The Tablet PC segment offers opportunities for the mobile corporate market, as well as horizontal and vertical markets. However, it remains to be seen if products with competing functionality and lower prices will keep the
market from high growth.

– New products have continued to enter the smart appliance market, however, it has continued to be most hampered by a lack of consumer education on how these products add value. This category will likely not experience high growth rates until there are standards in place, higher Internet penetration rates, and lower prices.

For more information at http://www.instat.com