LONDON, January 9, 2003 - According to some of its leading players, the Web hosting industry in Europe has stagnated and demand continues to be weak. However, IDC's latest findings show that demand is stronger than some providers suggest and that the market overall continues to grow, albeit at a lower rate than was forecast in 2001.
According to IDC's latest research, the managed Web hosting market in Western Europe will grow from $1,942 million in 2001 to $5,556 million in 2006, representing a CAGR for 2001 to 2006 of 23%. "The hosting market has certainly slowed down during 2002, but from extremely high growth rates in previous years, " said James Eibisch, IDC Research Director for EMEA IP and Hosting Services. "Although companies' hosting budgets are currently tight, and some users are even moving hosting back in-house, demand is fundamentally strong despite the industry turmoil". He continued, "the growth in broadband access, content consumption and ecommerce is high and, despite individual cases of poor cash flow or unsustainable business models, will drive the need for robust, professional hosting services".
The hosting industry is consolidating and there is a current steady stream of closures, bankruptcies and acquisitions. Most hosting facilities will remain operational and customer-ready, but overall capacity will decrease significantly as excess capacity is removed from the market.
UK and German companies continue to dominate the European hosting market, accounting for 60% of spending on managed Web hosting services in 2002, declining to 56% by 2006. Similarly, large companies with over 250 employees accounted for 62% of spending in 2002, declining to 52% by 2006.
This recent study, European Managed Web Hosting Services, 2001-2006 (IDC #
WB02J) sizes, forecasts, and analyzes the Western European market for managed Web hosting services. It provides detailed market splits by country (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the UK), hosting service type (basic and complex), company size (micro, small, medium, and large) and vertical sector (manufacturing, transport, retail/wholesale, finance, government).
To purchase this document, call your local IDC office or visit www.idc.com.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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For more information, contact:
James Eibisch
+44 20 8987 7114
jeibisch@idc.com
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