The latest industry projections say that the number of digital radio sets sold could hit 500,000 by the end of the year.
Ian Dickens, chief executive of the Digital Radio Development Bureau (DRDB), a joint body set up by the BBC and commercial radio companies to promote the new medium, have revealed that there are now around 175,000 digital radio sets in the market - up by 25,000 since the beginning of the year.
Mr Dickens said: "This time last year there were 600 digital radio outlets, mainly independent retailers. Now there are 3,000, including many of the biggest high street electrical chains, such as Currys and Dixons. Because of the success of digital radio last Christmas there are now many more manufacturers and more sets available. Roberts, the brand leader in analogue radio sets in the UK, has four new digital radio models coming out next week. Our target for the year in total is to reach between 350,000 and 500,000, which would be 6% of total radio set sales for 2003."
The BBC are planning to invest £2m in 47 new digital radio transmitters that will extend the technology's coverage from 65% to 85% of the UK population with the service available for the first time to listeners in areas of central England, East Anglia, the south east, the south west, the north and Scotland. They are also building 47 new digital radio transmitters between now and May next year, with work already begun at 20 sites, the total number of BBC digital radio transmitters going from 31 to 78.
The BBC is hoping further to stimulate digital radio sales with its new campaign promoting its own digital radio stations, 1Xtra, Five Live Sports Extra, 6 Music, BBC7 and the Asian Network.
Uptake of digital radio has been slow because very few sets were in the shops and those that were available were very expensive. But sales picked up last Christmas, due largely to the fact that much cheaper £100 digital radios became more widely available.