The iPod accessory market continues to boom - manufacturers in the Far East expect a 37 per cent rise in the value of products sold this year alone.

A report from Global Crossing shows that mainland China and Taiwan accessory manufacturers expect to produce over $104 million worth of iPod and related audio accessories in 2006.

Publisher Mark Saunderson said: "The iPod phenomenon has created plenty of opportunities for accessory manufacturers. At least 50 new suppliers are ready to begin production this year in Taiwan and mainland China alone."

The report forecasts that in 2006 the production value of such products in China will climb 85 per cent, achieving $33 million. In Taiwan, production is expected to reach $71 million.

The report points to several new trends which may raise production costs, ultimately raising iPod peripheral prices for consumers: "Production costs are increasing due to compliance with the European restriction of hazardous substances directive and high energy costs," said Saunderson.

"Many manufacturers expect to increase export prices by about 10 per cent in the months ahead," he added.

Despite raised production costs, the iPod (and PSP) product creation industry remains attractive. "By the end of 2006, the industry will have swelled to more than 250 suppliers and expanded production by more than 50 per cent to meet customer's demands," the report explains.