With a potential addressable market measured in the billions of units, In-Stat forecasts the market for picoprojectors will exceed $1.1 billion within five years.

The report states that cell phones and accessory projectors will lead the picoprojector market, with computing devices and consumer products following.

The tiny embedded projectors were highlighted at this year’s Billboard Mobile Entertainment Live! event that preceded the opening of CTIA Wireless 2009. Logic Wireless, the first U.S. company to embed a picoprojector in a smartphone, was a sponsor for the Billboard event.

Aasim Saied, chairman and CEO for Logic Wireless, gave a demonstration of the Logic Bolt, highlighting the device’s ability to project an array of media types, from videos to slideshows, on virtually any flat surface. Logic Wireless has not yet announced a carrier partner.

In January of 2009, Samsung announced a stand-alone picoprojector that can attach to cell phones.

“Technological advances in miniaturization, signal processing, and light sources –
including green laser – are making picoprojectors a realistic feature for small battery-powered devices like cell phones, media players, computing devices and other consumer electronics,” said In-Stat analyst David Chamberlain in a press release.

The report concludes that projector module economies of scale will expand the market for embedded picoprojectors to lower-priced cell phones and media players in the near future.

Companies that currently offer the picoprojector module include 3M, Displaytech, Foxxcon, Light Blue Optics, Oculon, Optoma, Microvision, Toshiba and TI.