Analysts at iSuppli predict that the Portable Media Player (PMP)/MP3 player market will grow 5.5 per cent to 268.6 million units in 2011 from 216.9 million units in 2007.

The main challenge to PMP/MP3 players include rising competition from media-capable mobile phones, but iSuppli believes PMPs will retain their technological edge over media-capable handsets.

iSuppli senior analyst for consumer electronics Chris Crotty said: “The future of PMP/MP3 players is bright due to continued hardware cost reductions, the rapid growth of online video and audio content and new offerings that will make it easier for users to access and download such online media.”