Tuesday, November 10, 2009

Small Projectors, Big Opportunities

Pico projectors could top 7 million units by 2013.

Pico projectors may be small in size—but their growth opportunity is huge, with overall shipments expected to rise at an amazing Compound Annual Growth Rate (CAGR) of 257.8 percent from 2008 to 2013, according to iSuppli Corp.

Global shipments of pico projectors, both standalone models and those embedded into other electronic products, are set to rise to 7.3 million units by 2013, up from 12,445 in 2008.

iSuppli defines pico projectors as front projectors weighing less than 2 pounds—or about 0.9 kilograms—and sized at less than 60 cubic inches—or about 983 cubic centimeters—without a battery pack. Pico projectors are capable of producing large displays, with some able to show bright, 50-inch diagonal images on a wall or other surface. There are two major types of pico projectors: standalone front-projection units and those integrated into other products.

Standalone pico projectors are extremely compact and lightweight, making them ideal for a number of uses where size is an issue and carrying a projector is a must. With embedded projectors, the technology is integrated as a display device for video/data oriented products, including PDAs, smart phones, cell phones and portable video games. Standalone pico projectors—which are already on the market—have the potential to generate about 4.3 million unit sales by 2013.

But it is the embedded pico projectors that promise to take front projection to the next level. There is a void in the marketplace now, with small handheld devices unable to provide big displays that allow show photos, videos and other content to be shared with others. Pico projectors can fill that void. Because of this, they will represent a boon to the front-projection market and to those vendors manufacturing pico projectors and components.

However, in the short term, this market will be limited, with shipments of embedded pico projectors expected to reach only about 3 million units by 2013. This is because embedded pico projectors face myriad challenges, including power consumption, size, weight, brightness, robustness and cost. If these technological challenges are not overcome, then the promise of pico projectors will not be fulfilled.

Overall, the pico projector market promises to be a high growth area and if these technological challenges can be overcome, vendors and display suppliers will stand to benefit tremendously.

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