PEN SCANNERS WRITE THE NEXT CHAPER IN A RAPIDLY EXPANDING MARKET.

Driven by the growing popularity of the Internet and the need for image digitization, scanners have gone mainstream. Pen scanners, also known as digital highlighters, are the next step in scanner evolution. According to International Data Corp. (IDC) this segment of the US scanner market will experience a compound annual growth rate (CAGR) of 109 percent from 1999 to 2004, as shipments climb to 840,000 units by the end of the forecast period.

Once confined to the desktop, scanners have become a fully portable peripheral that can scan single lines of text, convert them to editable text, and store the information for transfer to a personal computer. "Unlike flatbeds, pen scanners allow users to collect information from specific sections of a document," says Ron Glaz, senior analyst with IDC's Digital Cameras and Scanners research program. "Because you're only scanning the portion of the document you need, these devices substantially decrease scanning and processing time." Data is then transferred from the scanner to the PC via a cable that connects to the computer serial port or an IrDa port.

To this point, there are three serious vendors immersed in the relatively new pen scanner market. C Technologies, Siemens, and WizCom Technologies each introduced handheld scanners in 2H99, all geared toward eliminating functionality limitations of traditional pen scanners. Overall, the three models were very similar in design, size, and weight; however, all three had a slight variation of features and price tags ranging from $99 to $199.

Key findings:

* Pen scanners projected for release in 2000 will include USB connectivity. * In 2004, the US pen scanner market will hit $109 million. * By mid-2000, pen scanners will be priced below $100. * 40-50 percent of scanned documents are archived, printed, and edited.

US Handheld Scanners: The Digital Highlighter (IDC #B21198) provides a high-level view of US highlighter pen scanners. It provides data on 1999 actual unit shipments and value of shipments (US dollars) and total-year forecasts for 2000-2004. To order the report, contact Patrick Steeves at 508-988-6787 or [e-mail].