Media-converter equipment market fueled by large, more complex LANs

As local area networks (LANs) become larger and more complex, the result is a major ongoing operational expense and disruption of work, according to Stephen Montgomery, president of ElectroniCast Corp., a market-forecast consultant firm based in San Mateo, CA. But that's good news for the LAN media-converter equipment market, as network administrators seek out inexpensive ways to upgrade their systems.

The challenge to upgrade existing networks often requires adapting to another media, such as copper-to-fiber or multimode-to-singlemode fiber or even coaxial to unshielded twisted-pair (UTP) copper. Media converters offer the administrator the means to implement these changes at a lower cost.

In 1998, the global-consumption value for LAN media-converter equipment reached $143.3 million, based on ElectroniCast's research. North America held a 61.3% share with $87.8 million. Europe represents a rapidly increasing market with a 25.2% share, or $36.1 million, in 1998, expected to increase to 29.6%, or $297.8 million, by 2008.

The Japan/Pacific Rim market share is relatively lower, with 11% in 1998. This region, says ElectroniCast, has been typically rebuilding and installing "new builds" instead of over-building legacy networks. In South America, the market share will dramatically increase to 7.4%, or more than $74.2 million by 2008.

User demand for greater bandwidth and increased interconnectivity to the desktop and throughout the network are matched by rapidly growing demand for global-broadband interconnectivity. Interactive multimedia terminals, videoconferencing, and rapid access to massive databases are seen as productively increasing tools with quick payback. Media converters play a role in enabling network-expansion capability without making the current operational network products obsolete.

The entire report is available from ElectroniCast by calling Theresa Hosking at (650) 343-1398, fax (650) 343-1698, or e-mail: [email protected].