Shipments of IP-enabled consumer electronics total 64mn in 2007

January 31, 2008 – Shipments of IP-enabled consumer electronics totalled 64mn units in 2007, representing a growth of 73%, according to a new report from MultiMedia Intelligence.

The research firm goes on to say that the market continues to be dominated by Internet-enabled video game consoles, adding that while many of these remain unconnected, the developing installed base represents a “trojan horse” with “enormous” potential for online gaming, video and music downloads, as well as a variety of Internet-based value-added services.

“An increasing number of TV-centric consumer electronics devices with IP interfaces is developing,” said Mark Kirstein, President of MultiMedia Intelligence.  “Manufacturers are adding Internet interfaces across TVs, DVD equipment, as well cable, telco and satellite set-top boxes.  While manufacturers and operators are gradually adding IP connectivity, beyond game consoles the IP-enabled consumer electronics market has not reached a true inflection point for hyper-growth.  However, this growing installed base of CE devices with dormant IP ports could quickly become active with a simple network connection or software upgrade.”

Mr. Kirstein goes on to say that the market for digital media adaptors (DMA) has disappointed, with many companies unsuccessfully betting their future on this market.  “Simply integrating the DMA function into CE devices is not enough to dramatically accelerate growth.”