Content Networking Market Expected to Reach $8 Billion by 2005
15 November 2001
In the face of struggling economic times, the content networking industry remains healthy, and revenue is expected to expand in both the enterprise and service provider markets over the next four years, says IDC research, which projects that worldwide content network spending will increase from $1.6 billion in 2001 to $8 billion in 2005, representing
an estimated annual compound growth of 49% during the forecast period.
Although Web hosting and content delivery network service providers were the
primary early adopters of content networking in 2000 and early 2001, this is
beginning to shift, and networking equipment sales are expanding into the
enterprise.
"Fueling growth in the enterprise market is the customer's need for availability
and reliability in new Web-based applications," said Lucinda Borovick, program
director for IDC's Datacenter Networks research.
"In addition, enterprise
channels are expanding as major infrastructure suppliers expand to offer content
networking products."
IDC research finds the United States continues to dominate the content
networking market, accounting for just over 57% of the worldwide market spending.
Although the United States will maintain its dominance through 2005, its revenue share will slip to 52% over that time.
One of the strongest-growing
regions is Asia/Pacific, which will increase its worldwide market share from
just over 12% in 2001 to just under 18% in 2005.
According to the analysts, the following factors will contribute to the growth of content networking:

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