Worldwide Information Appliance Market to Explode Study

The worldwide marketplace for information appliance is rapidlytaking off as new products, technologies and vendors are announcedone after another.

According to a report released Monday by U.S. market researchfirm International Data Corporation (IDC), as an ever-broader groupof vendors attempt to address the "post-PC era", the world marketfor information appliances will exceed 89 million units, or 17.8billion U.S. dollars, in 2004, up from a market of 11 million unitsand 2.4 billion dollars in 1999.

The IDC defines information appliances as an emerging category ofdigital consumer electronics that provide low-cost, easy-to-use,consumer-focused access to the features and benefits of theInternet. IDC's information appliance taxonomy includes shipmentsfrom Internet gaming consoles, NetTVs, Internet smart handhelddevices, Web terminals, email terminals and screenphones. As theseand other new devices arrive in the next few years, the IDCforecasts that U.S. unit shipments of consumer informationappliances will outnumber those of consumer PCs by 2002.

"Current on-line users want access to services in more locationsand situations, while many other consumers desire Internet accesswithout the inherent complexities of PCs," IDC's report said. "It isclear the PC will not be the only enabling device as both groupsfind information appliances a solution that can improve theirlifestyle and work style."

According to the IDC, the devices that lead the market are onesthat take advantage of existing infrastructures and usage patterns.Devices such as NetTV set-top boxes as well as Internet gamingconsoles will benefit from consumers' familiarity with thetelevision. Internet connectivity is also making inroads into theincreasingly popular smart handheld device market.