NEWS RELEASE

Perspective of the market scale and its trend
in the main areas of the Internet market until the year 2005

December 14, 2000

Nomura Research Institute, Ltd.


Nomura Research Institute, Ltd. (NRI: Tokyo, Shozo Hashimoto as the President & CEO) released the analysis of the feasible market scale and its trend up to the year 2005 in the main areas of the IT market in Japan.
The survey covers the areas in which rapid changes are expected such as high and mid-speed Internet connection, the digital broadcasting, mobile communications, ASP (Application Service Provider), the digital contents, PDA (Personal Digital Assistant).

<Estimation of the market scale in the main areas of the IT business until the year 2005>

  2000 2005 Average growth rate Others
The market of the high and mid-speed Internet connection
  xDSL one thousand household 17 2,777 277%  
one hundred million yen 5 642 261%  
FWA one thousand household 1 728 374%  
one hundred million yen 0 238 385%  
FTTH one thousand household 0 2,304 -  
one hundred million yen 0 929 -  
Cable Internet one thousand household 558 3,956 148%  
one hundred million yen 138 1,323 157%  
Satellite Internet one hundred million yen 232 373 110%  
Communication market
  Special line one hundred million yen 9,823 14,656 108%  
IP-VPN one hundred million yen 40 1,451 205%  
Mobile communications Ten thousand units 6,640 8,120 104% Contracts (Includes PHS) User's fee
one hundred million yen 42,250 70,550 111%
Broadcasting market
  BS Digital broadcasting one thousand household 750 12,500 176% Advertisement, NHK bill and pay contents
one hundred million yen 113 5,078 214%
CS Digital broadcasting one thousand household 2,690 6,080 118% Advertisement + TV license
one hundred million yen 1,417 2,781 114%
Cable TV one thousand household 3,160 5,400 111% Advertisement + TV license
one hundred million yen 2,082 3,087 108%
Digital terrestrial broadcasting one thousand household - 5,746 - Advertisement + NHK bill
one hundred million yen - 2,663 -
Platform market
  Electronic authentication one hundred million yen 28 447 174%  
Internet advertisement one hundred million yen 495 4,197 153%  
e-Business market
  Internet user One million 19 43 118% Age ranging from 15~59, PC for domestic uses
ISP one hundred million yen 7,900 12,992 110%  
ASP one hundred million yen - 3,322 - ASP Market in a broad sense
Housing hosting one hundred million yen - 7,375 -
Traffic management one hundred million yen - 1,741 -
Digital content market
  Online game one hundred million yen 20 2,500 263%  
Online distribution of music one hundred million yen 6 950 275%  
Online publication one hundred million yen 10 130 167%  
Hardware market
  PC one million 114 177 109% Demand of the whole world
PDA one million 9 19 116% Consignment of the whole world
Mobile phone one million 412 719 112% Production of the whole worlds


<Market for the high and mid-speed Internet connection>

The market for the high and mid-speed Internet connection, which is expecting the rapid growth, will mark the beginning of the broadband in 2001. It will be provided for one third of the 30 million households that have Internet access in 2005. Especially xDSL (x Digital Subscriber Line) and Cable Internet are considered to serve as a cornerstone in this area.

<Digital broadcasting market>

BS (Broadcast satellite) digital broadcasting started in December 2000. With CS (Communications satellite) broadcasting and Digital Terrestrial broadcasting which is being planned to start the service in 2003, over 24 million households are expected to contract with those services and the scale of the market will exceed ¥1 trillion.

<Mobile Communication market>

More than 70% of those whose age is ranging from 15 to 59 have already used mobile phone or PHS (Personal Handy-phone System). The diversification of the transaction and the subsequent income increase through the mobile commerce and advertisement will supplement the decrease of the income from the regular telephone lines. The contract with mobile phone or PHS is expected to be 81.2 millions and the overall payment of the users will be up to ¥7 trillion.

<ASP Market>

ASP (Application Service provider) Market which is expected to play the key role for the Information distribution (among the small and medium-scale enterprises, as well), will be ¥330 billion market in 2005 because of the accelerating tendency of SMEs investing for the information distribution.

<Digital content market>

The digital content market is expected to grow rapidly with the diffusion of Internet and its high and mid-speed Internet access. The scale of the market of online game, online music distribution, and online publication is expected to be respectively ¥250 billion, ¥95 billion, and ¥13 billion.

<PDA market>

PDA, which is well exemplified by PalmPilot will meet a huge demand because of the improvement of wireless communication connections. In 2005 around 19 million sales worldwide are expected while 3.5 million in Japan.


The reference materials referred to above are available in PDF file format. (29KB)

* You need to download the Japanese font from "Asian Font packs for Acrobat Reader" at the web site of Adobe in case character errors take place in PDF files.

Inquires to: Corporate Communication Department, Nomura Research Institute
Telephone. 81-3-5255-1981
E-mail:kouhou@nri.co.jp


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