Sales of IAs in vertical markets to increase by 80%

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Vertical markets for Internet appliances (IAs), such as the hotel, healthcare, education and financial services markets, will show an annual growth rate of 80.7% between 2000 and 2005, from 87,000 to 1,675,000 units. During that time, the high-tech market research firm Cahners In-Stat Group estimates that vertical markets will become a larger proportion of overall Internet appliance sales, growing from 9.8% in 2000 to 27.8% in 2005.

Internet appliances are devices that access the Internet for purposes of web browsing. There are two categories of Internet appliances: TV-based and Internet terminals.

In-Stat reports* that the hospitality, or hotel market, is the most mature market for Internet appliances, led by television set-top boxes which deliver video-on-demand and Internet access.

The healthcare market also has a great deal of potential for Internet appliances, particularly web tablets which can be placed in patient rooms in hospitals to update medical records through wireless LANs. Internet appliances will also be seen in the home healthcare market, as an increasingly elderly population uses them to keep in touch with medical personnel.

In-Stat has also found that:
• The education market will see the introduction of Internet appliances as alternatives to PCs in the classroom environment.

• The financial services market has seen the most significant Internet appliance sale to date - an agreement between Intel and Spanish financial services company, Banco Santander Central Hispano, under which Intel will sell 250,000 of its Dot.Station Internet appliances.

• Other vertical markets for Internet appliances include residential control and security and public space, or Multi-Public Unit Internet access, which includes areas such as airports, convention centers, train stations, hotel lobbies, cafes, kiosks, and sports arenas.

“Overall, vertical markets for Internet appliances are in a very early stage, and results are likely to be quite volatile,” says Brian O’Rourke, senior analyst with In-Stat’s Internet access devices group. “The Intel deal is an example, as that single deal is forecast to represent 65% of all Internet appliances sold in vertical applications for 2001.”

* Vertical Markets for Internet Appliances: First Steps in Infant Markets (ID0104AD), provides a complete review and unit forecast of the vertical Internet appliance market through 2005. Profiles of Internet appliance suppliers in vertical markets, including Intel, Honeywell, NIC and Frontpath, are provided. For more information, contact Matthew Woods at [email protected].

About Cahners In-Stat Group
In-Stat is a unit of Cahners Business Information and a member of the Reed Elsevier plc group. The group covers digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

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