Equipment Vendors Forced to Reposition Themselves in Evolving Network Connectivity Market, According to IDC

FRAMINGHAM, MA – AUGUST 8, 2001 – Despite a steep fall in network interface cards (NIC) sales and a deteriorating economic environment, the network connectivity market is rebounding. According to IDC, total worldwide revenues in this market are expected to surge from $3.5 billion in 2000 to more than $5.3 billion in 2005. New technologies are forcing equipment vendors to realign their market strategies.

 

"Next-generation technologies like gigabit ethernet and wireless LAN are transforming this market in terms of applications and functionality," said Jason Smolek, analyst for IDC’s Enterprise Networks program. "In addition, LOM and mini-PCI are also revolutionizing this market into one that needs to address smaller, cheaper, and less power consumptive form factors."

IDC believes that equipment vendors need to reposition themselves in a market that relies increasingly upon competitive pricing, economies of scale, and partnerships with PC and server vendors.

Global opportunities are ripe, particularly outside the more developed markets. Emerging economies in Latin/South America, Asia/Pacific, as well as Central/Eastern Europe, Russia, and the Middle East and Africa, are all prime candidates for expanding the network connectivity market.

IDC recently published Worldwide Network Connectivity Market Forecast and Analysis, 2000 – 2005 (IDC#W25183). This report forecasts network interface cards, LAN on motherboard and mini-peripheral component interconnect form factors, as well as the total network connectivity market opportunity. Forecasts include unit shipments, end-user revenues, installed base, and average sales prices. To purchase this report or for more information, Contact Demetra Georgakopoulos at 1-800-343-4952, extension 4496, or at demetra@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. 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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