Aftermarket accessories outstrip computer growth

The US aftermarket for computer accessories approached $2.9 billion in 2005.

According to Venture Development Corporation's recently released "Computer accessories for desktop and notebook computers" research programme, the US aftermarket for computer accessories, electronic and nonelectronic, covered under the scope of the study approached $2.9 billion in 2005.

VDC expects nearly a 9% growth rate through 2010, with revenue shipments projected to exceed $4.3 billion within five years.

Electronic accessories accounted for nearly 62% of the total US aftermarket and are poised to grow more than 9% over the next 5 years.

The nonelectronic accessory market was approximately $1.1 billion in 2005 and is expected to approach $1.7 billion in 2010.

A number of broad technology and economic trends impact growth and decline in both nonelectronic and electronic/electrical computer accessory sales.

Explosive global adoption of consumer electronics products such as MP3 players, mobile satellite radios, and mobile terminals are having a positive impact on sales of computer accessories.

A growing number of computer accessory suppliers are expanding their business models to include the development of accessories designed specifically for popular devices such as the Apple iPod and XM Radio.

The convergence of office and home entertainment electronics is expected to continue, partially due to the increased adoption of flat panel monitors (as compared with CRT).

The development of hybrid television/personal computing devices has further blurred the line between the office and the home and is creating new opportunities for suppliers of computer accessories.

Increased adoption of wireless technologies and devices is changing the face of the office environment as cubicles, previously installed to hide an enormous amount of wires, are being increasingly abandoned for open-air offices where employees sit facing each other.

Suppliers capable of providing both electronic and nonelectronic computer accessories that meet the needs of the new age office will be well positioned for future growth.

Key factors impacting revenue growth for nonelectronic computer accessories include the following.

As industry focus shifts toward mobile products and applications, slower growth is expected for shipments of desktop printer stands over the next five years.

Nevertheless, surging demand in both the US SoHo and small business sectors is expected to drive investment in the near term.

Employers are increasingly seeing the benefits of equipping their offices and employees with safe furniture that promotes good posture.

Reduced occurrence of medical issues related to back and neck stress that lead to high health care costs and improved utilisation of office space are two key drivers of keyboard drawer/holder adoption.

The proliferation of mini-disks and CD/RW and DVD/RW technologies, as well as flash memory and Zip, has created demand for media and media storage.

On the other hand, increased memory and faster download times on personal computers and consumer electronics have had a negative effect on sales.

As more expensive (typically around $2000), wider (21in-plus) LCD screens and flat-panel monitors gain popularity, demand for protection filters to protect end-user investment is forecasted to grow.

The need for consumers to be comfortable and stylish while protecting their hardware investments during their mobile lifestyles are key drivers of growth for the notebook PC carrying case market.

Key factors impacting revenue growth for electronic/electrical computer accessories include the following.

Growing demand for the wireless office and the proliferation of wireless networking pose a significant threat to cable manufacturers.

VDC expects wireless technologies such as Bluetooth, WLAN, Wi-Fi and ultrawideband (UWB) to negatively affect shipments of computer cables, even USB, particularly once a viable Wireless USB standard is put into place.

In recent years, desktop KVM adoption has grown steadily, particularly in less cost-sensitive markets where consumers are economically capable of affording multiple computing devices.

Partially hindered by the success of console gaming, which is highlighted by surging worldwide demand for living room staples such as Sony's Playstation, Microsoft's Xbox, and the Nintendo GameCube, the aftermarket for game controllers has fallen on hard times - more so for smaller, less branded suppliers.

Notebook PCs are increasingly becoming equipped with camera devices as online video communication continues to surge.

This is driving integration with digital cameras, which means that in addition to "traditional" video-oriented manufacturers, a new array of still camera makers are entering the PC camera space.

Increased Internet usage and the need for ergonomic consumer products in the USA have greatly influenced end-user demand for more robust and functional pointing device products.

Recent product innovation is highlighted by vendors adding on additional buttons to carry out "forward", "back" and other browser commands, and coupling them with a scrolling wheel to enable easier and faster web surfing.

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