Worldwide shipments of digital frames reached 2.8 million units in 2006, with an average selling price of US$168, and will grow to 42.3 million units by 2011, with US shipments representing 54% of the market at that time, according to IDC. Shipment growth of digital frames will be driven by added features, larger frame sizes, and lower prices, noted the research firm.

"Low prices, solid products, and surging customer interest reignited the digital photo frame market in 2006," said Tom Mainelli, senior research analyst with IDC's Monitors and Projectors research team. "We expect stellar growth well into the future if the industry can manage looming supply issues."

The 5- to 6.9-inch frame category made up the bulk of the market in 2006, but the 7- to 8.9-inch category will dominate in 2007 and retain the top spot throughout 2011, noted IDC.

Digital frame prices will be a major purchase influencer as overall worldwide prices decline an average of 16.5% from 2006 to 2011, according to IDC.