IDC: MP3 All Over The Place

IDC has issued a report that finds the "portable compressed audio (MP3) player market continues to surge, led by the portable flash player category which is expected to grow from 26.4 million units shipped worldwide in 2004 to nearly 124 million units in 2009." Key forecast findings include:

• The maximum portable flash player capacity is expected to increase from 1GB in 2004 to reach 8GB in 2006 and 16GB by late 2007.
• Video support for music video playback is expected to drive demand for portable flash players and hard drive-based portable jukeboxes. This feature is expected to be complemented by music video downloads from paid online media services.
• The market for hard drive-based portable jukeboxes is expected to grow at a worldwide compound annual growth rate (CAGR) of 21.5% during the forecast period. IDC expects this market to be inhibited by the availability of high-capacity portable flash players and average selling prices (ASPs) in excess of $200 throughout the forecast period.
• Worldwide total units and revenue for all four segments of the compressed audio player market are expected to reach 945.5 million and $145.4 billion respectively by 2009.

Susan Kevorkian at IDC said, "Demand for portable MP3 players is booming, as more and more consumers get acquainted with their stylish form factors and digital audio functionality. In addition, DVD players, mobile phones and gaming devices that play back compressed audio will be key drivers of the compressed audio player market during the forecast period."