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Asia is Largest Market for Information Appliances

Buffalo Grove IL, August 5, 2000-
For most high-tech products the U.S. has a dominant market share for numerous years. But the information appliance market will have a different pattern. The USA information appliance market share will be only about 25% in 2000-only four years after the market emerged. In most computer-related markets the U.S. market share does not drop below 30% until 10 years after market introduction.

An information appliance is an inexpensive, easy-to-use device based on computer technology that is dedicated to do one or a few similar functions. The information appliance industry has numerous market segments based on which functions are provided. Nearly all information appliances will have Internet access and are often called web appliances. Web access and/or PC functionality will be added to many existing products that are in volume productions such as set-top boxes, VCRs, video game players, music players, cellular phones, handheld computers and many others. Communications-based information appliances will be the leading segment due to the future popularity of web cellular phones. However, in many regions of the world, including the USA, web cellular phones will be slower to take off than the current m-commerce hype may indicate.

Currently, Asia is the largest information appliance market with sales of over 12M units expected this year, which will grow to over 93M units in 2005. This is due to rapid growth of web cellular phones and other web appliances. Of the many information appliance segments, the U.S. is doing best in the PDA/handheld computer segment.

Region 2000 2005 2000-2005 CAGR
  Unit Sales Share Unit Sales Share  
USA 7.4M 25.5% 51.8M 17.2% 47.6%
N. America 8.2M 28.3% 57.4M 19.0% 47.6%
W. Europe 5.0M 17.2% 57.1M 18.9% 62.8%
E. Europe 1.3M 4.5% 34.4M 11.4% 92.5%
Asia Pacific 12.1M 41.7% 93.5M 31.0% 50.5%
S/C America 1.9M 6.6% 41.7M 13.8% 85.5%
Rest of World 0.55M 1.9% 17.8M 5.9% 100.5%
Worldwide 29.0M 100% 302M 100% 59.8%

"The reason that information appliances will have such phenomenal growth is that web capabilities and PC functionality are being added to a variety of existing high-volume products," says Dr. Egil Juliussen, the author of the report. "There will be also be many new devices such as web access devices and medical information appliances, but their volume shipments will take several years to materialize."

These are some of the results from a recent information appliance market research report by eTForecasts. The report explores technology trends, product segments and market opportunities. The report gives the reader an understanding of the many different information appliance segments, how they are likely to evolve, geographic differences and how they will affect existing markets and industries.

The report projects that information appliances will have the most impact on regions with low PC penetration. In regions with high PC penetration, information appliances will primarily become supplemental devices used for web access and information convenience tools.

eTForecasts publishes market research reports for the PC and Internet industries.

  Updated August 5, 2000