Portable video players, like Apple’s latest iPod nanos, are going mainstream, according to a report from Parks Associates. Worldwide shipments of portable video players will grow at an annualized rate of 30% over the next five years, reaching 132 million units shipped per year in 2011:

The massive adoption of portable video players, with over half a billion expected to be in use within the next five years, promises unprecedented opportunity for world of podcasting and new media.

“The video PMP market will enter a strong growth period within the next five years,” said Harry Wang, senior analyst at Parks Associates. “Video capability fuels the upgrade demand from existing device owners, and more content, especially free and short online video clips, gives consumers the incentive to upgrade.”

In North America, the percentage of flash-based video PMPs will rise from 15% in 2006 to 77% in 2011. Elsewhere, flash-based video PMPs already account for the majority of the market and will continue to expand their lead.

“Flash memory‚Äôs merits, such as durability, small form factor, and low power consumption, make it the preferred storage medium for video PMP manufacturers,” Wang said. “Barring any significant developments in the online video market, the use of hard-disk drive on the PMP platform will trail substantially.”