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  Press Contacts:
Jeff Wilson
Principal Analyst, Network Security
Infonetics Research
(408) 583-3337
jeff@infonetics.com


Worldwide telecom/datacom equipment tops $123B in 2006, will grow 20% by 2010

 

CAMPBELL, California, April 19, 2007—Sales of service provider and enterprise telecom and datacom equipment topped $123 billion worldwide in 2006, up 9% from 2005, and is forecast to grow 20% to $148 billion in 2010, says a new report from Infonetics Research.

 

According to the report, Service Provider and Enterprise Telecom and Datacom Equipment, the 5-year compound annual growth rates for all segments tracked in the report range from flat to strong double digits from 2006 to 2010, with the IPTV and service provider VoIP and IMS equipment markets showing the most growth.

 

“The spending increase in the overall telecom and datacom equipment market is being fueled by service providers upgrading from TDM to IP packet networks to support voice, video, and data, as well as enterprises transforming their networks to integrate data, multimedia, and security,” said Infonetics Research analyst Jeff Wilson.

 

Report Highlights

 

  • The IPTV equipment market will double its proportion of the total telecom/datacom equipment market between 2006 and 2010
  • Recent interest in NAC and the continued integration of security, traffic management, and other high-value functions into routers and switches will help boost the enterprise router and switch market through 2010
  • The service provider router and switch market will experience steady growth due to a positive capex environment and a flurry of IP network transformation
  • The network security appliance and software segment will continue to be a hot market because of the evolution of threats and increasing integration of security into the fabric of the network
  • Service provider products represent the majority of total telecom/datacom equipment sales, although its proportion of the total will decrease slightly as spending on enterprise products increases through 2010
  • The service provider next gen voice and IMS market represents 3% of the total telecom/datacom market now, growing to 5% in 2010
  • Cisco remains the revenue-leading vendor with 20% of the total worldwide market; Alcatel-Lucent is now 2nd
  • 32% of 2006 telecom/datacom revenue came from EMEA, 30% from North America, 28% from Asia Pacific, and 10% from CALA; spending in Asia Pacific is growing the fastest

 

Infonetics’ report compiles market size, market share, and forecast data for market segments the firm covers to provide a big picture of the health of the market worldwide, including the overall contribution of revenue by major product categories, geographic distribution of revenue, and leading vendors. The report focuses on networking products, and excludes consumer electronics such as mobile phones, mobile video devices, consumer WiFi phones, and dual-mode WiFi/cellular phones..


Download report highlights at www.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.


Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research and capex analysis.

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"Cisco's acquisition of IronPort will shake up the market share picture for content security appliances and drive strong growth."

Jeff Wilson
Principal Analyst, Infonetics Research
Content Security Appliances and Software