The study predicts demand for smart appliances - non-PC devices that access the Internet either as their primary function or to enhance their core functions - will grow by a compound rate of 101% annually from 2000 to 2005.

According to Cindy Wolf, In-Stat's research analyst who specialises in Internet access devices, "Manufacturers have been trying to figure out which features consumers will actually pay for. But now, the industry is primed for growth. There are new products entering the market this year, and device makers are beginning to agree on standards."

A lack of standards has been a major factor in slow growth. One area where this is most apparent in big ticket Internet-enabled white goods such as washing machines, dryers and refrigerators. In addition, most companies have refrained from producing devices until they know the level of consumer demand, but consumers have not been able to demonstrate demand because no products are available.

Some drive may emerge from the adoption of standards. There are several organizations working to solve "interoperability" issues, i.e. trying to get different devices working together. Two of the larger groups working to this end are the Association of Home Appliance Manufacturers in the US (AHAM), and Universal Plug and Play (UP&P).

New devices predicted to arrive on the market include analogue Internet TVs and Internet- enabled cars. Cindy Wolf added "Manufacturers are working on the Internet-enabled automobiles of the future. Right now, most companies are bringing voice into cars. The consumers are not surfing the Net or reading e-mail themselves, they push a button and the service reads their e-mail or the news headlines."