With continuing economic resurgence, renewed investments by both the government sector and enterprises, telecommunication industry liberalisation, and substantial increases in Internet usage, the deployment of data communications networks in Asia/Pacific, excluding Japan, is expected to remain strong throughout the five-year forecast.
Given the resiliency witnessed between 1998 and 1999, IDC expects the overall data communications market (including NICs, hubs, switches, routers, remote access servers, and WAN switches) in the region to reach US$9 billion by 2004, a compound annual growth rate (CAGR) of 23%.
Aided by the strong growth in switches and routers, regained consumer confidence, and stronger business sentiment, the LAN market (includes NICs, hubs, switches, and routers) for the region is likely to see robust growth of 18% over the forecast period to reach US$5.8 billion by 2004. In terms of products, switches will continue to remain the fastest-growing segment at a CAGR of 22% to reach 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 an 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 at IDC Asia/Pacific.
Due to the migration from a TDM-based architecture to a packet-based platform, the increase in Internet traffic, and the demand for new data services, the WAN switch market will be the fastest-growing product segment with a CAGR of 37%. 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 be the fastest-growing country at a CAGR of 36%, 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.
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