E-book and e-reader market soars

New research reveals 200 per cent growth rate in 2010 for emerging category

Futuresource Consulting has confirmed that the e-book and e-reader markets are continuing to develop at a blistering pace, with the global market more than doubling in 2010.

Fiona Hoy, market analyst at Futuresource, said last year saw the growth rate exceed 200 per cent, representing some 90 million units.

"This equates to a value of more than $900m (£557m) and was largely attributable to growth in the US region, which represented more than 80 per cent of global revenue last year," she added.

She said the figures have been bolstered by the increasing availability of e-book services, e-reading devices and the recent launch of tablets such as the iPad, with consumers beating down the door at outlets such as Amazon that adopted a loss-leader approach on key Kindle titles.

However, the global balance will begin to shift in coming years. The US's contribution to e-book and e-reader sales is expected to account for just over half of global revenue by 2014, Hoy said.

"Looking to Western Europe, the region represented nearly 10 per cent of global e-book revenue in 2010, with the UK market dominating," she said.

Hoy added that the European landscape varies by nation. Last year, Germany made some steady market gains and the Spanish market was plagued with piracy, for example.

"For many countries across the region – including Italy and Spain – 2010 was the first full year that e-readers were readily available at retail. However, sparse local-language titles and limited paid-for e-book services acted as key obstacles to legitimate, paid-for e-book market growth," she said.

"As local-language content and demand develops, Western Europe's share of global e-book revenue will grow significantly, contributing in excess of $6bn towards global revenue in 2014."

Amazon only entered the UK e-book market in August 2010.

The launch of Google's eBook service in Europe will have a significant impact, she added.

Ad-funded and subscription library services are likely to emerge in coming years alongside added-value and interactive titles, which will enhance the consumer experience and blur the boundaries between books and other entertainment platforms, according to Hoy.

Amazon entered the UK e-book market in August. Wi-Fi and 3G Kindle e-readers became its best-selling product for 2010 - outselling DVDs, music albums, games, and actual books -- on the UK site.

"On 29 July, Amazon.co.uk started taking pre-orders for the all-new Kindle featuring 50 per cent better contrast than any other e-reader, a 21 per cent smaller body with the same six-inch reading area, and a 15 per cent lighter weight at just 247g," Amazon stated.