Worldwide Tape Storage Revenues Up Despite Slowing Shipments, According To IDC Research

FRAMINGHAM, Mass., Jan. 14, 1998 — The worldwide tape drive storage market reached revenues of 2.9 billion in 1997 — a 15 percent increase over 1996, according to new research from International Data Corporation (IDC). IDC expects this trend to continue as the market climbs to an expected $3.1 billion in 1998.

Overall, the market realized a significant boost in revenues despite sluggish shipments of only three percent from 1996 to 1997. Increased average selling values (ASVs), which increased 12 percent in 1997, helped make up for the market's overall flat shipment growth. According to recently published IDC research, 1997 Tape Storage Year in Review and 1998 Forecast, unit growth will remain slow in 1998 due to declines in the DC2000 and DC6000 technologies. These products are being squeezed on the desktop by flexible removable magnetic products such as the Zip Drive from Iomega.

The midrange tape drive segment will propel the worldwide tape storage market through 2002. This portion of the market, which is made up of drives in the 4mm, 8mm, and DLT categories, will climb from $1.9 billion OEM revenues in 1997 to $2.9 billion by 2002. "DLT has become the de-facto standard in the midrange tape drive market," said Robert Amatruda, senior analyst, IDC's Storage Mechanisms program. IDC expects the DLT segment to increase worldwide revenues by 30 percent and worldwide shipments by 27 percent in 1998. The strong forecast for the midrange market, and DLT in particular, will help off-set declines in other tape technologies.

Worldwide Market Highlights

The tape drive market totaled 5.56 million drive units in 1997

OEM revenues increased 15 percent to $2.9 billion in 1997

In 1997, DC2000 shipments declined 3 percent, but remained the volume leader with 56 percent of all tape drives shipped.

The 4mm drive market will account for 33 percent of tape storage revenues in 1998

DLT shipments will grow 27 percent to 418,000 in 1998

The worldwide tape drive market went through some fundamental changes in 1997 that will continue into 1998. A new set of technologies are now making their way to the forefront and are positioned to solidify tape as a viable storage solution.

To order a copy of 1997 Tape Storage Year in Review and 1998 Forecast (IDC #B15159), please contact Cheryl Toffel at 508-935-4389.

About IDC

Headquartered in Framingham, Mass., International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 300 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.

IDC/LINK, an IDC subsidiary, researches and analyzes the home computing market, leading-edge technologies in telecommunications and new media, and the convergence of computing and consumer electronics.

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