Consumers worldwide will increase spending on digital home devices by 32 percent to $159 Billion in 2006, according to the latest research from Strategy Analytics' Connected Home Devices service. The report, "Digital Home Devices Global Market Forecast," predicts that digital cameras, DVD players and MP3 players will be the most popular items this year. In terms of revenue, however, LCD and plasma TVs are the star performers.

Consumers around the world will spend nearly $70 Billion on flat panel TVs during 2006, representing 44 percent of total digital home market revenues.

This report identifies a trend towards IP-connected devices as the next important wave in the migration toward digital homes. Fourteen percent of digital home devices sold this year will be IP-enabled, which allows them to access digital media websites on the Internet, or stored on the home network.

Examples of such devices include games consoles and set-top boxes. IP devices will become more and more popular as the popularity of digital media services, such as YouTube and iTunes, continues to grow.

"While price competition remains intense, manufacturers that meet key customer needs are enjoying significant revenue growth," says Peter King, Director, Connected Home Devices research. "The evidence is clear that consumers will increase spending on digital devices that improve their access to content and the quality of the entertainment experience."

Europe will be the world's largest market this year, with revenues of $51.5 Billion and a growth rate of 38 percent. In the US, revenues will grow by 28 percent to reach $49.1 Billion.

Digital Cameras	94.3
DVD Players	87.8
MP3 Players	87.0
Digital TV Set-Top Boxes	69.4
Plasma/LCD TVs	49.6
DVD Recorders	27.0
Handheld Games Consoles	26.7
Games Consoles	19.5
Digital Video Recorders	15.2
Entertainment PCs	10.7
IP Cellphones	7.2
Portable Media Players	4.5