Converters with specialty-coating capabilities, listen up: The fledgling e-paper display business will grow to $2.0 billion in annual revenues by 2012, says a new report from NanoMarkets (www.nanomarkets.net).

The Glen Allen, VA-based industry analyst expects that the arrival of high-quality e-paper technologies will create new opportunities in smart shelves, point-of-purchase displays, cellphone displays and disposable electronics.

Key findings of the report include:

• Color is the next big thing: Color will enable e-paper to penetrate deeper into certain market segments including cellphone displays and signage, and it will also help e-paper compete directly with OLED or LCD displays.

• More e-paper in cellphones: Cellphone sub-displays—and eventually main displays—are the high-volume opportunities for e-paper firms. Motorola already has been quite successful with Motophone, the first cellphone to use e-paper. The best thing these converters have on their side is the ability of the displays to be read in sunlight, an advantage that no other display technology can provide. By 2014, the cellphone sector will generate $763 million in e-paper display revenues.

• E-paper perfect for pricing displays: Smart shelves and POP displays are a “tremendous opportunity” for e-paper, enabling stores to change shelf prices from a central location for promotions, adjust for changes in wholesale pricing and make corrections when pricing on the shelves is incorrect. E-paper’s low power consumption means this display can be run from batteries and its flexibility makes it easy to fix to shelves and walls. By 2014, NanoMarkets expects e-paper to generate $1.2 billion from this sector.