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CD-R demand to reach 4.5 billion units this year
Compiled from Dempa Shimbun by Miruku Lin, Research Center; Liu Yi-fang, DigiTimes.com [Friday 4 May 2001]

The Japan Recording Media Industries Association predicts blank CD-R disc demand to grow to 5.6 billion units in 2003 and remain the most popular storage medium for several years.

Demand grew 84% to 3.27 billion units in 2000. The significant growth is attributed to a rise in CD-R applications, improved storage speeds and an increased number of PCs equipped with external CD-R/RW drives. Given an increase in PC shipments and the trend of CD-R/RW drives replacing floppy drives, global CD-R disc demand will amount to 4.5 billion units in 2001.

On the other hand, some market observers contend that the CD-R market is nearing maturity and new applications with large demand for CD-R discs have not emerged. The rising popularity of new storage systems like DVD-R/RW and DVD/RAM drives this year, moreover, will slow CD-R disc demand.

As for CD-R manufacturing, the supply surpluses last year were attributed to Taiwanese and Hong Kong manufacturers’ intensive equipment upgrading, and an inventory of more than one billion units prompted a substantial slump in prices. Taiwanese manufacturers produced 400 million CD-R discs per month last year, attaining a 70% capacity utilization rate. However, they will adjust their production this year to re-balance supply and demand.

The association predicts that Japan will account for 13% of global CD-R manufacturing in 2001, close to the proportion in 2000. If overseas Japanese ODMs (original design manufacturers) are taken into consideration, the proportion will reach 39%.

CD-R disc production (million units)
  2000 2001 2002 2003
  Production Growth
(%)
Production Growth
(%)
Production Growth
(%)
Production Growth
(%)
Japan

216

102

315

46

427

36

507

19

North America

1,140

89

1,565

37

1,762

13

1,801

2

Europe

1,444

81

1,945

35

2,243

15

2,252

0

Other

470

77

675

44

908

35

1,070

18

Global

3,270

84

4,500

38

5,340

19

5,630

5

 

Source: Japan Recording Media Industries Association, compiled by DigiTimes, May 2001.




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