Digital Photo Frames Opportunity Driven by Growth in Consumer Digital Imaging Market

Business Wire, Sept 12, 2000

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Sept. 12, 2000

The digital imaging market is growing at a tremendous pace. InfoTrends' research shows that at least 20% of U.S. households will be creating digital photos this year with a scanner, digital camera, or film digitizing service.

The recent surge in digital photo creation and sharing has created a market opportunity for digital photo frames. These devices allow users to free their digital photos from the depths of their hard drive or storage media to continually view and share. A new study from InfoTrends Research Group, "Digital Photo Frames Market Outlook," analyzes the market opportunity for these devices through 2005.

Digital photo frames are offered in two distinct configurations: standalone and Internet-connected. Standalone frames enable users to transfer images from their PC, digital camera, or storage card to the frame, whereas Internet-connected frames primarily retrieve image content from the vendor's online network. The network is a fee-based service that users subscribe to when they purchase the frame. A primary target market for these frames is tech-savvy consumers who want to share photos with non-technical family and friends.

Currently, there are just five digital photo frame vendors: Ceiva Logic, Digi-Frame, Sony, VideoChip, and Weave Innovations. However, many others are eyeing the potential growth in this market. Some industry leading vendors, such as Kodak, are entering the market via an OEMed solution. These dedicated photo display devices have few rivals today, but in coming years will compete with future multipurpose display devices, such as flat panel TVs and Internet appliances.

"The photo frame market is filling a specific need, but its growth will not be as strong as other segments of the digital photography market," says Michelle Lampmann, market research analyst for InfoTrends Research Group. "Due to their high average price of $299, and competition from new digital gadgets vying for consumers' attention, digital photo frames are likely to be lower on consumers' must-buy list this holiday season and throughout 2001."

The new report, "Digital Photo Frames Market Outlook," highlights the market drivers and barriers, current vendors, and includes a five-year market forecast for digital photo frame unit shipments and revenues. The report is available immediately in hard copy and electronic format. Please contact InfoTrends for information on other new reports, including "Wireless Imaging Market Outlook" and the "2000 Worldwide Digital Camera Forecast".

About InfoTrends Research Group

InfoTrends Research Group, Inc. (www.infotrends-rgi.com) is the leading market research and consulting firm for digital imaging technologies and markets. With the largest number of analysts dedicated solely to digital imaging, InfoTrends offers the most focused coverage of this rapidly evolving market. InfoTrends helps its worldwide clientele improve the effectiveness of their strategic planning by providing valuable tools for intelligent decision-making, including forecasts, end user research, product analysis, and market trend tracking. Research is available through standalone reports, custom consulting and through the following subscription advisory services: Image Scanning Trends(TM), Digital Photography Trends(TM) and Internet Imaging Trends(TM), available in hard copy and online format. InfoTrends is committed to promoting market growth and development through ImageScape(TM), the foremost press and media event series for the digital imaging industry, and through its industry conferences. InfoTrends Research Group, Inc., 581 Boylston St., Boston, MA 02116, Tel: (617) 859-0300, Fax: (617) 859-0330, www.infotrends-rgi.com.