With nearly universal penetration, the $2.6 billion market for home phone products is mature and growth is pinned on technological innovation. From the mid-1990s through the beginning of this decade, several innovations stimulated growth, including the introduction of caller ID and digital answering machines. But, in spite of these advances, competition from the mobile phone market is plaguing the industry—dollars sales have fallen every year since 1998.

With nearly universal penetration, the $2.6 billion market for home phone products is mature and growth is pinned on technological innovation. From the mid-1990s through the beginning of this decade, several innovations stimulated growth, including the introduction of caller ID and digital answering machines. But, in spite of these advances, competition from the mobile phone market is plaguing the industry—dollars sales have fallen every year since 1998.

This report explores the hypothesis that the market will require a new product category to stimulate growth. A number of groundbreaking products have been brought to the market, including cordless data phones and videophones, but no product has received substantial advertising or promotional support, especially compared to that devoted to cellular phones. Given this situation, it appears likely that home phone products sales will continue to slide for the foreseeable future.

Among the key issues covered in this report are how mobile phones are shrinking the home phone market, the market for higher frequencies in cordless phones, and the importance of home offices to the market. Original consumer research examines product ownership, where products are purchased and how purchase decisions are made by age, gender, ethnic and income groups. The major suppliers are discussed in detail, and a six-year trend analysis predicts future growth.

Mintel defines the home phone products market as consisting of corded and cordless phones that plug into a land-based phone line in the consumer’s household. Caller ID boxes and telephone answering devices are also included in this report.

The following categories will be discussed in this report:

corded telephones where all functions of the telephone are in the handset

two-piece phones, where there is a separate handset and base with functions usually on the base unit

decorative phones

analog and digital cordless phones that allow calls to be made or received anywhere within the home, provided the handset is within range of the base unit

answering machines/telephone answering machines

This report concentrates solely on the telecommunications hardware sector, so does not cover service sectors such as subscription or call charges. Also excluded from the scope of this report are related hardware markets including fax machines, modems and pagers. Other equipment not included in this report are mobile/cellular phones, phone entry systems, and accessories such as batteries, headsets, ringer amplifiers and telemarketing prevention devices.

A number of U.S. reports covering related sectors have been published, are planned, or are in preparation, including:

Mobile Phones--U.S. Report, August 2003

Mobile Electronics--U.S. Report, June 2003

Cameras--U.S. Report, October 2002

Home Video--U.S. Report, August 2002

Home Audio--U.S. Report, June 2002

Portable Audio Players--U.S. Report, May 2002

Personal Digital Assistants--U.S. Report, December 2001

Report contents may be subject to change prior to the date of publication.