According to a report by London-headquartered consultancy Datamonitor Ltd, the European data communications market is worth $6,500m and has grown at an average of 10.8% each year since 1989. The report, European Data Networking, forecasts the market will increase to $7,500m in 1994 and grow at an average rate of 14% a year between now and 1997. By country, the UK is said to be the largest consumer in Europe in 1993, accounting for 28% of overall market. The other prime markets are Germany, with 24% and France with 19%. Largest of the secondary markets is Italy, which is said to have a 10% slice, followed by Spain with 6%, the Benelux countries at 4% and Scandinavia trailing with 3%. The rest of Europe accounts for 6%. By market segment, hubs and routers are the fastest-growing sector. Strong growth rates are predicted to 1997, although the effect of new technologies such as Asynchronous Transfer Mode and Ethernet switching may cause a decline in the market thereafter. However, established markets, such as the adaptor board and modem segments still constitute 22% and 21% respectively of the market. The importance of research and development is reflected by the average spend of companies in this area, says Datamonitor. According to the report, up to 10% of company revenues were spent research and development on across the industry in 1993. European Data Networking is available from Datamonitor for UKP700.
