MP3 Market to Nearly Quadruple by 2009, iSuppli Predicts

Online staff -- Electronic News, 3/15/2005

In what's great news for Apple and other MP3 player makers, iSuppli reported today that shipments of MP3 players are expected to rise by nearly a factor of four from 2004 to 2009.

The 29 percent compound annual growth rate (CAGR), which is expected to see shipments grow from 36.8 million units in 2004 to 132 million units in 2009, is being propelled by demand for Hard Disk Drive (HDD)-based products that hold much more music than flash-based products, iSuppli said, pointing to the HDD-based iPod.

Growth is slowing, however, from 2004, which saw shipments of MP3 players rise by a whopping 116 percent. Unit shipments of MP3s will rise to 57.7 million in 2005, up 57 percent from 2004, iSuppli said.

HDD Holds More, So It Sells More

Specifically, HDD-based MP3 player shipments will grow by a CAGR of 41.8 percent from 2004 to 2009, iSuppli predicted. Shipments will rise to 56.2 million units in 2009, up from 9.8 million in 2004.

By 2009, HDD-based products will account for nearly half of all MP3 shipments, at 42.6 percent, up from only 26.6 percent in 2004.

According to the firm, the overall market for semiconductors used in MP3 players is expected to expand to $1.07 billion in 2009, rising at a CAGR of 27.4 percent from $319 billion in 2004.