The market for data communications equipment in Asia-Pacific (excluding Japan) will grow at 23 percent annually over the next five years to reach a value of $US9 billion by 2004, according to a report from International Data Corp. (IDC).
The growth is being driven by continuing regional economic resurgence, renewed investments by companies and governments, telecommunications industry deregulation and rapid increase in Internet usage, IDC said.
Wide-area networking switches will be the fastest-growing market sector with 37 percent annual growth leading to a $2 billion market by 2004. The local area network market, including network interface cards, hubs, switches and routers, will grow 18 percent annually to be worth $5.8 billion by 2004, IDC said.
The remote access market will quadruple over the five-year period, from $300 million in 1999 to $1.4 billion in 2004, driven by a trend to voice and data convergence in the region, IDC said.
Australia and Korea will continue to be the main regional markets due to their sophisticated telecommunication and Internet markets. China will present a major growth opportunity for vendors, and India will be the fastest-growing large market in the region, as the Internet becomes more popular, increasing awareness of and demand for leading-edge technologies, IDC said.