• by Jack Loechner , Staff Writer @mp_research, January 15, 2002

According to Cahners In-Stat/MDR, the worldwide market for Internet Access Devices (personal computers, mobile telephones, Internet set top boxes, and Internet and smart appliances) will grow at an overall annual rate of 41.6% in unit terms between 2000 and 2005. The PC and mobile phone segments currently comprise just over 93% of the industry and will continue to represent the majority throughout the forecast period. Cindy Wolf, an analyst with In-Stat/MDR, says "In the coming years many of these product segments will face increased competition from each other as device functionality converges." The report also offers the following observations:

- New products and operating systems will stimulate demand in the coming years.

- Consumers are hesitant to switch to Internet-enabled phones due to security fears and the lack of compelling applications.

- Internet set top boxes are confronted with challenges in broadband penetration and consumer education.

- The Internet appliance market has seen the exit of many players due to price and application issues.

- The smart appliance market is being hampered by a lack of standards, high prices, and a lack of consumer education on how the products add value.

Find out more here.