History (1999): Shipments in WW Optical Automation Market in Downward Trend

Shipments in the WW optical automation market are in a downward trend that will land them at fewer than 88,000 units by 2003, down from more than 130,000 in 1998, said IDC in its newest report, 1999 Optical Automation Market Forecast and Review.

The market’s value, meanwhile, is in an upswing, increasing from $251 million to $278 million during the same time frame.

“Unit shipments in many optical automation segments will decline, but this doesn’t mean there are no opportunities in the overall market,” said Wolfgang Schlichting, research manager, IDC removable storage program. “Stable prices and increased importance of large jukeboxes will be important trends for manufacturers to leverage.”

In 1998, WW value of shipments in the optical automation market experienced lackluster growth, increasing only 0.2%.

If not for the solid performance of CD/DVD autochangers and jukeboxes, the news would have been a lot worse.

CD/DVD autochangers increased their value more than 12% in 1998 while CD/DVD jukeboxes’ value jumped 9%.

However, CD/DVD autochangers have seen their best days. The research firm expects value in this segment to deteriorate at a 14% CAGR through 2003.

“These products don’t have a clear home,” Schlichting said. “Pioneer’s re-entrance into the market in 1998 created some temporary momentum, but because Nakamichi and Pioneer are the only vendors competing in this segment, opportunity will depend heavily on their product plans and less on end-user demand.“

CD/DVD jukeboxes will avoid the trouble most optical automation segments will experience. Their value will steadily increase at a CAGR of almost 3% through 2003.

5.25-inch jukeboxes will also be a bright spot in the market, increasing their value at a CAGR well over 5%.

These 2 segments clearly dominate the market. In 1998, they accounted for more than 80% of its value. By 2003, their combined share will approach 90%.

“CD/DVD and 5.25-inch optical jukeboxes are discovering network-attached storage as an opportunity to grow the market,” Schlichting added. “The ease of use and installation will help the channel move optical jukeboxes and the end user compare storage solutions.”

This article is an abstract of news published on issue 139 on August 1999 from the former paper version of Computer Data Storage Newsletter.