The market for smart fabrics and interactive textiles (SFITs) is likely to exceed US$640 million by the end of 2008, revealed by the latest report from Research and Markets.

Research and Markets' report commented that the figure is well in excess of the figure of US$485 million predicted in its previous report, published in 2005. Moreover, the compound annual growth rate (CAGR) was found to be higher than expected at 27%.

The turnover in SFITs is generated in the production of intermediate components, or SFIT modules -- a sector involved in combining base electronic components into a textile substrate. However, this sector is growing by a relatively slow 19% per annum whereas finished SFIT-based textiles are growing by 76% per annum, according to the report.

The biggest single end use for SFITs continues to be heated automotive seating. But other applications are expected to catch up and overtake it, particularly textiles for physiological sensing. Demand for SFITs for military use also continues to be strong.

One of the most important technical developments in SFITs has been the replacement of metallic fibers with conductive polymers -- such as polypyrrole and polyaniline. In addition, there have been important developments in fibers coated with conductive metals. A further area of major promise is the use of nanotechnology, including carbon nanotubes -- provided concerns over potential health hazards can be resolved.

The SFIT industry is characterized by the presence of a large number of relatively small companies. This is a consequence of the diversity of technical expertise involved and the wide variety of developments, which have emerged. In this business environment, smaller enterprises are able to occupy profitable technological niches. Larger companies, by contrast, have been reluctant to enter the SFIT market. The industry is also characterized by strategic alliances and partnerships--despite low levels of competition. These have been seen as solutions to problems arising from limited production capacities and high costs of research and marketing.

For the future, a number of issues will need to be addressed as the industry develops, the report concluded.

One is the lack of industry standards. Another is the need for more professional marketing. Of particular importance is the need to bring down the cost of manufacture, and hence selling prices.