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By Sam S. Adkins, Chief Research Officer
Seattle, WA - April 10, 2010 - According to a new report by Ambient Insight, the US consumer demand for brain fitness applications is growing by a robust five-year compound annual growth rate (CAGR) of 51.2%. Annual consumer expenditures on these products reached $13.0 million in 2009.
The report, called “The US Consumer Market for Brain Fitness Applications: 2009-2014 Forecast and Analysis,” forecasts revenues for research-based brain fitness applications. In Ambient Insight's taxonomy, brain fitness applications are defined as products based on scientific research and designed to enhance specific cognitive abilities.
"Suppliers have successfully created a new market for brain fitness applications that target a large and diverse demographic on two ends of the age spectrum: the elderly and young children," comments Tyson Greer, CEO and author of the report. "The products are designed to enhance cognitive skills and to achieve what is known as 'transfer,' where the skills learned can be extended to new situations."
The free Executive Overview is available at: http://www.ambientinsight.com/Reports/BrainFitness.aspx
Until recently, suppliers targeted organizational and institutional buyers. Now they are marketing and selling products directly to consumers and this has become an important factor driving demand. Demand will eventually slow as the market matures, but for now there is a very healthy revenue growth rate.
"The healthy sales of the products have sparked an increase in private investment," reports Sam S. Adkins, Ambient Insight's Chief Research Officer. “There was $53.6 million invested in brain fitness companies in 2007 and 2008 with 55% of the funding going to consumer-facing suppliers. Obviously, investors believe these companies will be successful."
There is a new wave of confusion surrounding the definition and difference between brain games, brain training, and brain fitness. Buyers are now more aware of brands, but are less informed about the difference between various products on the market.
“It's all about value and brand now. The brain fitness industry has left the early adoption phase and entered the wide adoption phase," adds Greer. "Competition is intense. Suppliers are enhancing their positions by aiming for new markets, creating new partnerships, and connecting with customers in new ways."
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