Worldwide Optical/Removable Storage Drives Will Grow 19% in 2000, IDC Says

FRAMINGHAM, MASS., FEBRUARY 14, 2000 — The worldwide optical/removable drive market will follow up 24% unit growth in 1999 with an increase near 19% this year. The market's revenue, on the other hand, won't fare as well. During 1999, revenues managed a 12% increase. This year they won't be able to eke out even a 2% increase, according to IDC.

"Price pressure in the desktop-focused CD/DVD formats will severely impact revenues," said Wolfgang Schlichting, manager of IDC's Removable Storage research.

The big story during 2000 will be CD-RW and DVD-ROM. They will grow faster than the overall market with increases of 93% and 55%, respectively. DVD-Rec will be the highest growth segment with a 213% increase, bringing shipments to a respectable 847,000.

"CD-RW has gained a strong foothold with PC OEMs and is poised to outperform DVD-ROM as the preferred CD-ROM upgrade technology," Schlichting said. "Its high price relative to DVD-ROM is the primary limitation. Additionally, component supply shortages have slowed PC OEM enthusiasm – at least for the time being."

IDC also expects PC OEMs' enthusiasm for CD-RW to affect low-end removable magnetic drives' growth. In 1999, they earned a 41% increase. This year, IDC expects their shipments to increase 28%.

IDC's new report, Optical/Removable Storage Market (IDC #B21347) looks at factors driving demand for removable storage devices. The report shows 1998-2000 worldwide drive shipments and revenues by media type and 1998 and 1999 shipment and revenue share by vendor. Additionally, 1998-2000 shipments in the CD/DVD-Rec, 3.5in MO,5.25 optical, 12/14in. WORM, low-end removable magnetic, and high-end removable magnetic segments are shown by drive capacity. CD/DVD-ROM shipments are broken out by drive speed. To order a copy, contact Patrick Steeves at 1-800-343-4952, ext. 6787 or at psteeves@idc.com.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 42 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

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

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