Global e-book reader shipments will increase from 700,000 units in 2008 to 28 million units in 2013, representing a CAGR (compound annual growth rate) of 386%, according to a recently published report from Digitimes Research.

The special report on e-book readers also indicated that the total market value for e-book reader shipments would surpass US$3 billion in 2013, up from only US$244 million in 2008.

Amazon and Sony dominated the global market for e-book readers in 2009, but the industry is set to see a major shakeup in 2010, as established content providers such as Barnes & Noble become more competitive in the market and niche players in Europe grab a piece of the rapidly expanding market.

China, where the government is promoting e-reading as one of its major policies, is expected to become the second-largest single market for e-book readers in 2010.