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U.S. PC LAN MARKET SOARING OVER $7 BILLION AT 20 PERCENT-PLUS ANNUAL GROWTH

U.S. PC LAN MARKET SOARING OVER $7 BILLION AT 20 PERCENT-PLUS ANNUAL GROWTH
 MOUNTAIN VIEW, Calif., Sept. 30 /PRNewswire/ -- Personal computer local area network (PC-LAN) sales are continuing to grow by over 20 percent a year, with revenues projected to rise from $6.4 billion in 1991 to $7.7 billion in 1992 and with operating systems the fastest- growing market segment, says a new study just released by Market Intelligence.
 Sales of servers, the largest piece of the market, will grow from $4.1 billion in 1991 to $5 billion in 1992 at a 21.8-percent rate, nearly as rapidly as operating systems, which will expand to a projected $681 million from $558 million in 1991 sales. LAN cards will grow as a market from $1.2 billion in 1991 to $1.4 billion in 1992, and cabling sales will rise from $549 million to $625 million, projects the report, "PC LAN Markets."
 The number of networked PCs will leap from 20 million in 1991 to 100 million or more by the end of the decade, the study forecasts, while the number of PC networks grows much more slowly.
 Cabling and adapter cards that can operate under FDDI over copper standards should be available next year, attracting intense market attention for their ability to increase data throughput over existing copper wiring.
 Super-servers designed specifically for high-volume PC-LAN environments will grow especially fast as the size of the average LAN increases. These servers offer higher-volume data transfer capacity and greater reliability through features like fault-tolerance.
 Demand is continuing to grow rapidly for peer-to-peer operating systems that run the first "shrink-wrapped" LANs, targeted to small business end-users who need only link a few PCs for relatively modest file transfer and resource sharing applications. Market growth is being driven by new "plug and play" networks users can install without outside aid. While peer-to-peer was brought to market by small companies, industry giants have quickly realized its attractiveness and followed suit.
 Recession-driven corporate downsizing has greatly increased opportunities for LAN vendors. Intensified competition and declining user willingness to pay premiums for proprietary equipment are pushing prices down. Commoditization is bringing greater standards compliance.
 As PC LAN products reach commodity status, drops in pricing are preceding rather than following new manufacturing technologies or economies that could justify them from the vendor standpoint. The market will continue to put ongoing pressure on manufacturers to produce improved products at lower prices just to retain market position.
 The growing prevalence of portable laptop, notebook and sublaptop computers -- which will make up more than a third of all PC sales by the mid-1990s -- will increase the need to provide remote LAN access. Portable computer availability is expanding increasingly from the limited realm of the traveling businessperson to the person who takes work home nights or weekends.
 The international marketplace will offer even more rapid growth for established U.S. competitors. The Pacific Rim has particularly strong potential, with many Asian countries forecast to be very strong PC networking markets. Some countries like Malaysia, Thailand and Indonesia, that have never had resources to buy larger computers, are moving directly to PC networks. Due to the problems of processing complex written languages, these markets will probably lean toward the FDDI 100 Mb/s network.
 Market Intelligence is an international high-technology research firm specializing in data communications and information technology. All Market Intelligence reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Since 1982, Market Intelligence has emerged as one of the leading publishers of high-technology market research reports. Total Personal Computer Local Area Network Market: Revenue Forecasts (U.S.), 1988-1998
 Year Revenues Revenue
 ($ Billion) Growth Rate
 percent
 1988 3.03 ---
 1989 4.02 32.6
 1990 5.17 28.5
 1991 6.38 23.3
 1992 7.70 20.7
 1993 9.54 24.0
 1994 11.62 21.8
 1995 14.04 20.7
 1996 16.87 20.2
 1997 19.76 17.1
 1998 22.40 13.4
 Compound Annual Growth Rate (1991-1998): 20.0 percent
 NOTE: All figures are rounded.
 Code: 768-74; Publication Date: Sept. 1992; Price: $1495
 -0- 09/30/92
 CONTACT: Amy Arnell of Market Intelligence, 415-961-9000, or 415-961-5042 (fax) CO: MARKET INTELLIGENCE IN: CPR ST: CA -- SJ002 -- X402 09/30/92
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Sep 30, 1992
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