Content Networking Market Growth Explodes as Equipment Sales Expand into the Enterprise, According to IDC

FRAMINGHAM, MA. – NOVEMBER 14, 2001 – In the face of struggling economic times, the content networking industry remains healthy, and revenue is expected to expand in both the enterprise and service provider markets over the next four years. IDC research projects that worldwide content network spending will increase from $1.6 billion in 2001 to $8 billion in 2005. This represents a CAGR of 49% during the forecast period.

 

Although Web hosting and content delivery network service providers were the primary early adopters of content networking in 2000 and early 2001, this is beginning to shift, and networking equipment sales are expanding into the enterprise.

"Fueling growth in the enterprise market is the customer's need for availability and reliability in new Web-based applications," said Lucinda Borovick, program director for IDC's Datacenter Networks research. "In addition, enterprise channels are expanding as major infrastructure suppliers expand to offer content networking products."

IDC research finds the United States continues to dominate the content networking market, accounting for just over 57% of the worldwide market spending. Although the United States will maintain its dominance through 2005, its revenue share will slip to 52% over that time. One of the strongest-growing regions is Asia/Pacific, which will increase its worldwide market share from just over 12% in 2001 to just under 18% in 2005.

According to IDC, the following factors will contribute to the growth of content networking:

Continued demand for streaming media

Content networking will become core networking functionality

Continued demand from service providers for content networking equipment to enhance solutions in the Web hosting data center

Use of content networking as a core network component for wireless, VPN and VOIP solutions

IDC's new report Content Networking Forecast, 2001-2005 (IDC #25794) looks at the current size of the content network market and provides regional revenue forecasts through 2005. Topics covered in this report include content networking, content caching, content load balancing, streaming media, and layer 4-7 switches. To purchase this report, contact Demetra Georgakopoulos at 508-935-4496 or demetra@idc.com

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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