After a long development and commercialization period, low-power "electronic ink" displays are finally out of the labs and hitting the market in a big way, thanks mainly to Amazon's Kindle e-book reader. The Kindle caught on with early adopters the way Apple's iPod did. What remains to be seen is whether other contenders - some with possibly better technology - will displace the Kindle and/or expand the market beyond tech-savvy road warriors.
According to a NextGen Research study, the global market for e-paper displays will grow at the extremely healthy CAGR of 124% from 2008 through 2013, and will exceed $2.5 billion by the end of that period. The US will constitute fully 80% of this market at the outset, but increasing use of e-paper in other parts of the world will reduce the US share of the market to about 55% by the end of the forecast period.
"e-Reader makers will have to appeal to more than just early adopters and business travelers," says study author James Belcher. "Consumers have read books printed on paper for hundreds of years, without having to endure the multiple format changes seen in recorded music. Getting the bulk of consumers to change that behavior will require an experience superior to that of the printed page."
Mr. Belcher suggests there also are cultural and behavioral changes to consider: Do readers want a device dedicated solely to reading, or would they prefer one with multiple functions? How will netbooks and mobile phones capable of displaying digital texts affect the market for dedicated readers? Is reading on printed paper a preference or a habit? Will e-reader makers have to contend with a generation gap, with full market penetration dependent upon younger readers with no affinity for traditional paper? "These are all open questions," he says, "but they will need answers to grow the market beyond its initial successes."
"There will come a day when electronic paper is cheap enough to use on billboards and outdoor signage, which represents square miles of potential sales," Mr. Belcher says. "Until then, digital book readers will be the main drivers of e-paper market growth."
Posted to the site on 20th August 2009
Posted to: www.cellular-news.com/story/39220.php