According to a research by Frost & Sullivan, Indian interactive kiosks market is growing at a high rate. Although the concept and product was only introduced in India as recently as 1996, it has caught the fancy of end users, especially the IT-triggered corporate sectors.

Frost & Sullivan is an independent marketing consulting and training company which monitors the information technology industry for market trends, market measurements and strategies.

According to the report, the kiosks market is expected to grow to $236 million by 2005. The current applications are Point of Information (POI) kiosks, and Point of Purchase (POP) kiosks, which have yet to increase in popularity. Although thecurrent trend favors POI kiosks over POP kiosks, Frost & Sullivan forecasts the trend to reverse in the future.

Touch screens are utilised for both types of kiosks for various reasons. This feature allows users to comfortably navigate their way through menu options and enables the not-so-computer-literate customers to overcome hesitation and begin using kiosks for increased convenience in many arenas. There is an increase in demand to automate services that require the time and effort of personnel. It is expected that POP kiosks will begin providing information as well as enable users to access the internet for purchasing."This research forecasts the Indian interactive kiosks market to expand because the growth of the information superhighway is becoming more necessary among the Indian populace," according to Monica Deveshwar, a Frost & Sullivan analyst.

The end users in this market include banking and finance, retail, government and public sector units, infotainment, and process control, with banking,finance and retail experiencing the most expansion.

The primary market drivers are said to be the ease of use and simplicity of navigation, emerging internet access, and e-commerce-enabled capable kiosks, which increase sales channels. Growth in smart card technology impacting kiosk capabilities as well as the need for higher customer service levels are additional factors that make kiosks attractive to end users.

Some market restraints include the high costs of interactive kiosks, the sluggish time frame expected for e-commerce to grow, the lack of adequate infrastructure, vandalism and theft of kiosks, expensive and ongoing maintenance of units, and end-user acceptance.

Despite these restraints, the banking, finance and retail industries, are expected to continue to experience the most rapid growth.

The banking and finance sectors are predicted to dominate usage of interactive kiosks until 1999 and account for 35 per cent of market revenues, although in terms of contribution, they will be smallerthan the retail segment. In 2005, the market is expected to contribute 25 per cent of the total kiosks market in India. Moreover, with increased competition, most banks have begun implementing kiosks to increase customer service and convenience for clients.

The retail interactive kiosk market made up 15 per cent of the total Indian interactive kiosk market in 1996. In 1998, the retail sector had increased, accounting for 23 per cent of the total market. The growth of e-commerce will eventually propel the usage of interactive POP kiosks in the retail sector, making up 33 per cent of the total market by 2000. The retail contribution to the market will continue to grow and claim 40 per cent share by 2005.

Market participants include Avigna Technologies Ltd, CMS Computers Ltd, ESP Interactive, Fact Interactive, Head Multimedia, Intellvisions, Netcomm Labs Ltd, Nucleus Software Exports Ltd, Palas Software, Rider Software Ltd, Siemens Nixdorf Information Systems Ltd, Subhag Video Corporation, Tata InteractiveSystems, ADCOM Internet Design Studio, Kanini Consultants, Media Workshop India Ltd, Multimedia Studio Ltd, National Micro Ltd, Prodigy Digital Studio, Unitech Systems India and Vividh Multimedia Ltd.