The Inverse Multiplexing Equipment Market Matures, According to IDC
FRAMINGHAM, MA — OCTOBER 16, 2000 — The inverse multiplexing equipment (IMUX) market is maturing. According to IDC, worldwide IMUX equipment revenue will increase at a compound annual growth rate (CAGR) of 38%, from $70 million in 1999 to more than $250 million in 2003.
"Inverse multiplexing is a valuable piece of technology for filling the bandwidth and price gap between T1/E1 and T3/E3 connectivity," said Radha Vichare, research analyst in IDC's Data Communications Technology program. "It enables the transport of data at a faster rate than T1/E1 without the expense and availability issue associated with it."
According to IDC, the influencing factors driving IMUX solutions are lack of T3/E3 connections or services, the need for reasonably priced higher- bandwidth access, and the need for standards compliance.
IDC believes the older bit-based version of inverse multiplexers will face stiff competition from inverse multiplexing for ATM (IMA)-based solutions. In 1999, bit-based inverse multiplexing grabbed 60% of the market's revenue; however, the tides are turning swiftly in favor of IMA-based products. By 2003, three-quarters of IMUX equipment revenue will be IMA based.
"The move from bit-based to IMA-based products will rise quickly in the next few years because of standards compliance and quality-of-service guarantees for voice and video," Vichare said. "Where ATM transport is not available, proprietary bit-based solutions will fill the niche."
In 1999, 76% of bit-based IMUX equipment revenue came from the United States.
Information like the above can be found in IDC's report Inverse Multiplexing: Will ATM-Based Solutions Replace the Traditional Bit-Based Version? (IDC #B22918). This report identifies the major inverse multiplexing players and products. It discusses the forces driving this market and the challenges facing it. The report also outlines the main applications of inverse multiplexing equipment. Future growth trends are provided. Bit-based IMUX equipment revenue share is broken out by vendor and region for 1999 and projected for 2000.
To purchase this report, contact Bruce Atlas at 1-800-343-4952, extension 4053, or at firstname.lastname@example.org.
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