After experiencing 17.7 percent growth in 1998, the networking equipment market is expected to grow 15.5 percent in 1999, according to a report by Cahners In-Stat Group.
The report, “State of the Networking Equipment Market,” found that the growth of networking equipment will slow slightly in 1999 due to softening demand in the third and fourth quarters caused by purchasing freezes of Y2K-wary enterprises. Cahners In-Stat predicts slightly negative growth of 1.8 percent in Q4 1999.
North America continues to drive networking revenues with $16.5 billion in 1998, according to Cahners. The top three vendors in the network market, Cisco, 3Com, and Nortel, represented 50 percent of the revenue in 1998, with Cisco taking the top spot with 29.2 percent share.
Revenues in 1999 will be driven by LAN switching, access concentrators, and ATM WAN switching, according to Cahners.
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