While growth in the PDA market has been less than stellar this year, a In-Stat/MDR report, "The Worldwide PDA Market: The Next Generation of Mobile Computing", states that conditions will improve in coming years as demand for PDAs moves beyond the early adopter and mobile professional market into the mainstream consumer and corporate markets. The high-tech market research firm estimates that, as a result, the PDA market will experience a 17.6% compound annual growth rate between 2001-2006, with the highest growth rate anticipated for next year.

According to In-Stat/MDR, PDA components are taking the lead as PDAs enter a new phase, as upgrades are being made with regard to processors, memory densities, display technology, expansion ports, batteries, and operating systems. PDAs are also supporting increased multimedia and wireless communications technology. "In the coming year, we expect to see an increase in the variety of products offered to both the consumer and corporate markets. These products will offer a wide range of form factors, applications options, and price ranges," said Cindy Wolf, an analyst with In-Stat/MDR. "The attractive corporate market will continue to be a focal point when the economy recovers, and as spending in the corporate market picks up."

With an upswing in the economy, In-Stat/MDR expects an increase in corporate purchases of PDAs for use in the workplace, where previously consumers were bringing on their own PDA. In-Stat/MDR surveys show that about 10% of the U.S. workforce currently use some sort of PDA or handheld for business purposes (though they may purchase these devices individually). Looking forward, growth in the adoption of PDAs for business is expected to be quite strong in the United States, primarily due to improvements in functionality, battery life and pricing.