Data communications equipment in demand with support all round
SINGAPORE, 4 July 2000 (MaxisNet) - The deployment of data communications networks in Asia Pacific, excluding Japan, is expected to remain strong in the next five years and the International Data Corp (IDC) expects the overall data communications market in the region to reach US$9 billion by 2004, a cumulative growth rate (CAGR) of 23 percent.
The equipment which includes NICs, hubs, switches, routers, remote access servers and WAN switches are expected to be in high demand as the region continues to experience economic resurgence, renewed investments by both the government sector and enterprises, telecommunication industry liberalisation and substantial increases in Internet usage.
Aided by the strong growth in switches and routers, regained consumer confidence and stronger business sentiment, the LAN market (includes NIC, hub, switch and router) for the region is likely to see robust growth of 18 percent over the forecast period to reach US$5.8 billion by 2004, IDC said in a statement.
In terms of products, switches will continue to remain the fastest growing segment at a CAGR of 22 percent to reach a figure of US$3.3 billion by the end of the forecast period.
The Asia Pacific remote access market is expected to more than quadruple in the next five years, from US$0.3 billion in 1999 to US$ 1.4 billion in 2004. "Lack of installed base in emerging markets coupled with voice and data convergence trends throughout the region will be the primary market drivers," said Sandra Ng, vice president of Communications Research in IDC Asia Pacific.
Due to the migration from TDM based architecture to packet based platform, the increase in Internet traffic and the demand for new data services, the WAN switch market will be the fastest growth product segment at a CAGR of 37 percent. Consequently, the WAN switch market will grow from US$0.4 billion in 1999 to US$2 billion in 2004.
In terms of country ranking, PRC will remain one of the key growth markets in the region. Australia and Korea will continue to be the major markets due to growing opportunity in the telecommunications and Internet sectors.
However, India will the fastest growing country at a CAGR of 36 percent and its contribution to the region is expected to grow rapidly with the opening up of the Internet industry and thus likely increased awareness and demand for leading edge technologies.