IDC Forecasts a $69 Billion-Strong Internet Services Market in 2005

FRAMINGHAM, MA – JUNE 25, 2001 – Stories about the demise of the Internet services market have been greatly exaggerated. According to IDC, worldwide spending will more than triple from almost $22 billion in 2000 to close to $69 billion in 2005.


"As a result of the dot-com bubble burst, there’s been much speculation that the opportunity for Internet services firms has evaporated. In fact, we believe while the opportunity is different, it is more powerful than ever," said Pooneh Fooladi, senior analyst with IDC’s Internet services research program. "eCommerce will continue to drive demand for Internet services. It’s becoming an integral part of organizations’ overall strategies, and it’s becoming imperative to link ecommerce initiatives with other IT initiatives.”:

Demand for mcommerce will also fuel opportunity for Internet services firms. IDC forecasts spending on mobile solutions will skyrocket from $1.4 billion in 2000 to almost $40 billion by 2005.

"Corporations are no longer satisfied with solutions that are only available on fixed-wire devices. They’re looking to extend functionality on an increasing number of applications to an increasing assortment of mobile devices," Fooladi said. "This presents tremendous opportunity, not only for Internet services firms, but for all IT service and software providers."

The United States represents the largest market for Internet services. IDC estimates it will account for more than 40% of spending through 2005. Western Europe currently spends more than any other region on mobile solutions, representing 50% of 2000 spending. The U.S. market, however, will rapidly ramp up, and by 2005, it will account for more than 40% of mobile solutions spending.

IDC’s two new reports discuss the opportunity in the Internet services and mobile services markets:

· Worldwide Internet Services Market Forecast and Analysis, 2000-2005 (IDC #B24691) forecasts spending in Asia/Pacific, Japan, Latin America, Western Europe, and the rest of the world. The U.S. forecast is segmented by service category and industry.

· Worldwide Mobile Services Forecast and Analysis, 2000-2005 (IDC #B24466) forecasts spending in Western Europe, Asia/Pacific, Japan, the United States, and the rest of the word.

Both reports segment the U.S. forecast by service category and industry and discuss factors driving and inhibiting growth by region. They also include recommendations for services providers competing in these markets.

To purchase the reports, contact Jim Nagle at 1-800-343-4952, extension 4549, or at

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

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


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