LONDON (04/20/2000) - European ASPs (application service providers) serving the high end of the market stand to make US$1.19 billion per year within the next five years, spiking in 2004-2005, according to a forecast by International Data Corp. (IDC).
European ASPs did about $10 million worth of business in 1999, and by the end of 2004, the compound annual growth rate will be 130 percent, according to the study entitled "The European ASP Industry: A Strategic Perspective," released this week.
ASPs in the U.K are currently leading the market in Europe, due in part to U.S. companies using the country as a stepping stone to the rest of Europe, IDC said. Other European counties with generally strong English-language skills, such as the Scandinavian and the Benelux countries (Belgium, Luxembourg and the Netherlands), are also experiencing strong growth in the ASP markets, IDC said.
The surge of WAP (Wireless Application Protocol) technology, an area where the European market leads the U.S., is fueling the European ASP expansion as large, established corporations rush to take advantage of the new technologies, the study reported.
Furthermore, new online markets and the emergence of portal Web sites promoting business to business transactions are creating lucrative opportunities for ASPs in the European market, IDC said.
IDC is a subsidiary of International Data Group Inc., the parent company of the IDG News Service.
IDC, in Framingham, Massachusetts, can be contacted at +1-508-872-8200, or at http://www.idc.com/.