Low-cost and Toy Projectors to Open New Markets

 

          Insight Media has released a new report that finds that "low-cost projectors", i.e. stand-alone front projectors with retail prices under $300, will represent an important portion of the projection business in the 2009 - 2013 time frame.  These low cost projectors will allow the projection business to grow into new markets not accessible to higher-priced units.

          The newly released 2009 Low-Cost and Toy Projection Systems Report, subtitled "Technology, Cost and Marketing Analysis of Projectors That will Retail for Less than $300," covers the technology and markets for these electronic projectors.  This price point was chosen to define "Low-Cost" because this is the price point in the past where the volume of sales for other consumer electronics products increased rapidly.  Examples of consumer electronics whose sales increased rapidly near this price point include color TV, the VCR, the DVD, the cell phone and the iPod. 

          The report examines several categories of low-cost projectors, including toy projectors, ultraportable projectors, companion picoprojectors and value projectors.  Integrated picoprojectors do not meet the stand-alone requirement and are not considered. 

          There have been several projectors on the market that qualify as low-cost toy projectors including the Torpedo from Senario and the ZoomBox from Hasbro.  Due primarily to their low performance, which in turn is due to the incandescent lamp used in the design, these projectors have only had modest success to date.  The next generation of toy projectors is expected to use LED illumination and is forecast to have much higher sales.  In addition to these toys, some of the current generation of companion picoprojectors also qualifies as low-cost.  These LED-based projectors have enjoyed considerably more success and their unit sales and revenues are expected to grow rapidly. 

          Due to the relentless price erosion of projectors in the marketplace, Insight Media expects that low-end but mainstream projector designs will also reach the $300 price point within the 2009 - 2013 study period of the report.  These designs will include both 3LCD and DLP microdisplays coupled to mercury lamps.  By the end of the study period, the lumen output of these $300 projectors may be as high as 2500 lumens, enabling them to compete in mainstream applications too.

• Companion picoprojectors will represent the largest category of low-cost projectors.  By 2013 an estimated 88% of all companion picoprojectors will retail for less than $300.
• Toy electronic projectors will begin to replace the current generation of toy projectors based on film image sources and will represent the second largest category of projectors under $300, both in terms of unit sales and revenues.
• Most toy projectors will actually retail for prices under $150.
• Toy makers have special requirements for their electronic toys that do not apply to other projector categories.
• Ultraportable projectors under $300 will be based on either LEDs or the Ujoy or other low-cost HID lamps.
• Value projectors will compete with higher priced projectors in both the business and home theater markets.
• Manufacturers must focus on low prices to achieve the $300 price point but add-in features such as DVD players, media players or flash memory card readers will enhance the marketability and increase the sales of these projectors without increasing their retail prices beyond $300.

          "To develop this report, Insight Media spent a considerable amount of time understanding the market needs, cost structures and technologies of low-cost projectors," said Chris Chinnock, President of Insight Media and one of the contributors to the report.  "This is more than an update to our 2006 Low-cost Projector Report, it has been completely re-written to include new markets such as toys, distribution channels for low-cost projectors, margins required at all levels of the supply chain and new technologies developed over the last 3 years enabling these projectors."

          Matthew Brennesholtz, the lead analyst on the report, adds, "Other analysts have largely ignored the toy market when considering projection systems.  Toy makers have been selling toy projection systems for 100 years and are now ready to transition from film to electronic projectors.  This is one of the last remaining markets for film projection that has not yet been penetrated by electronic projection and it represents a major opportunity for both toy makers and projector makers alike."

          The report evaluates four markets for low-cost projectors, including a total of seven sub-markets.  Forecasts, both for unit sales and for industry revenue, are generated for each of the seven sub-categories.  These forecasts include optimistic, expected and conservative forecasts through 2013.   The impact of the current recession was also factored into the forecasts.  The results of these forecasts are presented several ways to give a clear view of the future of the low-cost projector industry.

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For more details on the 2009 Low-Cost and Toy Projection Systems Report, CLICK HERE.

To see a detailed Table of Contents, CLICK HERE.