Kiosk Newsbit

                        (PR Newswire; 04/05/99)                        


 MOUNTAIN VIEW, Calif., April 5 /PRNewswire/ -- Interactive kiosks have come a 
long way since their introduction in both the U.S. and internationally. They 
are used in a wide variety of applications in the financial and retail sectors 
of various countries, and their ever-growing popularity is not expected to 
decrease momentum anytime soon.

According to strategic research by Frost & Sullivan, Indian Interactive Kiosks 
Market is growing at an alarming 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. This market is expected 
to grow to U.S. $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 the current trend favors POI kiosks over POP 
kiosks, Frost & Sullivan forecasts the trend to reverse in the future.

Touch screens are utilized 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 a swell 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," says 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 percent of market revenues, although in 
terms of contribution, they will be smaller than the retail segment.  In 2005, 
the market is expected to contribute 25 percent of the total kiosks market in 
India.  Moreover, with the increased competition, most banks have begun 
implementing kiosks to increase customer service and convenience for clients.

The retail interactive kiosk market made up 15 percent of the total Indian 
interactive kiosk market in 1996.  In 1998, the retail sector had increased, 
accounting for 23 percent 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 percent of the total market by 2000.  The retail contribution to 
the market will continue to grow and claim 40 percent by 2005.

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

Frost & Sullivan is an independent marketing consulting and training company 
which monitors the information technology industry for market trends, market 
measurements and strategies.  This ongoing research is utilized to update a 
series of online research publications such as the Multimedia Custom 
Subscription (, and to support industry participants with 
customized consulting needs.

Visit Frost & Sullivan's Web site at

Thanks Kinetic!

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