Taking a Pulse on the Current Projection Market Segments


The education and corporate markets look promising for projectors. Corporate, down somewhat in the past couple of years, posted stronger numbers in the spring. In some cases, projects completed in the past few months were ordered before last September, so perhaps there'll be a residual downturn next year, but maybe not. On the other hand, many projects were delayed in Q4'01, leading to perhaps a lot of activity in late 2002. The AV industry came out ahead of many others after the early 1990s recession, so perhaps it will remain strong.

Analysts at the Projection Industry Summit Conference (PISC) agreed that the industry will grow, but opinions differ regarding how much, and how it will be segmented among the various markets.
The command and control market continues to grow at least 25% annually, despite major setbacks in the telecom and dot-com segments. Now there's a lot of activity in the government and military sectors, with an emphasis on security. Also, while before the focus was on defending against a strategic threat, now there's a much greater sense of seriousness and urgency.

These systems can cost as much as millions of dollars. So some companies use them not only as information centers, but also as marketing tools to impress existing and potential customers.
TFCInfo (Austin, TX) (www.tfcinfo.com) says consumers will want space-saving projectors for their homes as we move toward HDTV. They know they want another display device for entertainment; they're just not sure which one yet. A major marketing and educational campaign could make them choose a projector if the price is right.

Decision Tree (Stevenage Herts, UK) (www.dtc-worldwide.com) sees strong growth in the U.S. institutional/educational market, and a big opportunity in smaller companies, following saturation in larger companies.

Bill Cogshall of Pacific Media Associates (Mountain View, CA) ( www.pacificmediaassociates.com) suggests more aggressive growth, amounting to 7M projectors sold worldwide in 2006, with the U.S. accounting for 39%. He predicts 60K PDPs will be sold in the U.S. this year, up from 40K in 2000, still a small market compared to Europe and Asia.

Gary Kayye, Chief Visionary Officer at Kayye Consulting (Chapel Hill, NC) (www.kayye.com), says this year's growth in the AV corporate market will be only about 20%, rather than the 30-40% of the past few years, but that's still strong growth.

Stanford Resources (San Jose, CA) says look for more suppliers and $999 products, specifically models within the IT channel. However, although many are exploring less expensive, long-life products for home and education, no company has actually announced a projector for this price yet. SR also says the biggest challenges and opportunities lie in wireless and networking.

Stanford sees a worldwide market of over 6M plasmas worth over $16B in 2007. Prices are expected to drop on popular sizes, and larger panels will show up in more venues. Often plasmas are installed in areas that already have projectors due to the sex appeal and "wow" factors at play.

One thing most industry watchers agree on is the fact that if sales predictions for projectors are to ring true, the consumer piece must start gaining momentum sooner rather than later. - Stacy Moran

Insight Media, Annmarie Gabisch, 203-831-8464, Annmarie@insightmedia.info


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