Although the portable entertainment consumer electronics market will top 500 million units in 2008, growth momentum will wane through 2009, as the mainstream market is maturing fast, according to Digitimes Research.

The research group predicts that the portable entertainment market will have 12.6% growth in 2008, and only 5.5% in 2009, compared to 16.0% in 2007.

Mainstream products, such as digital still cameras (DSCs) and MP3 players, already have high penetration rates, while acceptability of new applications, such as portable media players (PMPs), remains low in the market, according to a recent Digitimes Research report on the consumer electronics market.

The market segments discussed in the report, "Trends of the Portable Entertainment Consumer Electronics Market," cover digital still cameras (DSCs), digital camcorders, portable DVD players, portable CD players, MP3 players, portable game consoles, MD players, PMPs, mobile TVs. The discussion excludes handsets, notebooks, PDAs, GPS devices, and FM radio receivers.

Joanne Chien, author of the report, said video functionality alone can rarely motivate consumers to purchase such products as PMPs or portable DVD players. Video functionality is likely to serve as an added-value features of other applications, such as portable game consoles, Chien said.

Unless there are breakthroughs in technologies or applications that can boost demand, the portable entertainment consumer electronics market will continue to see slow growth, Chien added.

Vendors of portable consumer electronics now have to address the issues concerning short product life cycles, quick maturity of the market (only three to four years of fast growth), and growing demand for content, according to the report.

Source: Digitimes Research, September 2007