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Recovery expected in 2010 for telecom/datacom equipment market; Cisco, Alcatel-Lucent, Ericsson lead market

Market research firm Infonetics Research released a new report, Telecom and Datacom Network Equipment, which aggregates data from the many markets the firm tracks (the majority of the networking products in the telecom/datacom equipment industry) to provide a big picture of the health of the market.

"Though service provider capital expenditures are slightly decreasing in 2009 and 2010, spending is still on the rise for products that help carriers transform their networks. On the enterprise side, while companies of all sizes everywhere have been hit hard by the recession, they are in the middle of key network transformations of their own, which drive pockets of good growth. Whether to save on operating expenses or to increase revenue, service providers and enterprises are investing in new network technology. The three segments showing the highest growth potential are IPTV and video equipment, broadband customer premise equipment, and subscriber data, policy, and service management software," said Jeff Wilson, principal analyst at Infonetics Research.

"We expect a mild contraction in the overall telecom and datacom equipment market in 2009, and a recovery between 2010 and 2011, followed by strong growth through 2013, when worldwide revenue will reach $195 billion," Wilson added.

REPORT HIGHLIGHTS

  • Telecom and datacom equipment tracked by Infonetics Research grew 8% in 2008, with worldwide revenue totaling $150 billion, driven in large part by currency appreciation against the US dollar
  • The two largest segments of the telecom/datacom market by revenue: service provider mobile/wireless infrastructure and enterprise router/switch/wireless LAN equipment
  • Cisco leads the overall worldwide telecom/datacom network equipment market in 2008, followed by Alcatel-Lucent and Ericsson; they dominate the enterprise segment
  • The battle for service provider money rages on, with Ericsson maintaining its lead in the carrier network equipment segment in 2008, while Alcatel-Lucent and Nokia Siemens continue their neck and neck race for second
  • The biggest increases in revenue market share in the service provider network equipment market in 2008 were made by Samsung, ZTE, and Huawei
  • The Asia Pacific region, led by China and India, is forecast to increase its telecom/datacom revenue market share by 5 points from 2008 to 2013, taking from EMEA and North America

    Infonetics’ telecom/datacom report compiles worldwide and regional market size, market share, and forecast data for market segments the firm covers (the majority of the networking products in the telecom/datacom equipment market) to assess the overall contribution of revenue by major product categories, geographic distribution of revenue, and leading vendors. Companies tracked include Alcatel-Lucent, Avaya, Cisco, Ericsson, Fujitsu, Huawei, Juniper, Motorola, NEC, Nokia Siemens, Nortel, Samsung, Tellabs, ZTE, and others.

    The report tracks network hardware and software (not including consumer electronics) sold to service providers, cable companies, and small, medium, and large organizations

    Service provider hardware and software tracked:

  • Broadband aggregation hardware (DSL, cable, PON, Ethernet FTTH)
  • Broadband CPE
  • IPTV and IP video
  • Optical network hardware
  • Service provider VoIP and IMS equipment
  • Carrier routing, switching, and metro Ethernet
  • Service provider mobile/wireless infrastructure (WiMAX, femtocell, mobile network, FMC, LTE, microwave, satellite, PDH/NIU)
  • Subscriber data/policy/service management software

    Enterprise hardware and software tracked:

  • Enterprise routers, switches, and wireless LAN equipment, including WiFi phones and WAN optimization appliances
  • Network security (IPSec, SSL VPN, network firewall, IDS/IPS, gateway content security, NAC)
  • Enterprise telephony and unified communications equipment

     [July 20, 2009]


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  • Infonetics Research: Ericsson and NEC neck and neck in growing microwave equipment market (September 15, 2009)
  • ST-Ericsson Launches World’s Smallest Solution for Superior Connectivity on Mobile Handsets (September 4, 2009)
  • DAVE Wireless chooses Ericsson to build its 3G network (August 7, 2009)
  • Ericsson and SMART provide high-speed mobile broadband in the Philippines (July 8, 2009)
  • Ericsson provides fixed-broadband access to all three operators in China (July 6, 2009)
  • Ericsson launches stylish new site solution (June 18, 2009)
  • Ericsson in first major managed services contract on the African continent with Zain Nigeria (June 8, 2009)
  • Ericsson frees netbooks from dongles and wires with new broadband module (June 5, 2009)
  • World’s first commercial 4G/LTE site unveiled in Sweden by Ericsson and TeliaSonera (May 26, 2009)
  • Qualcomm and ST-Ericsson Shine, Even as Wireless Chip Market Tanks (May 4, 2009)
  • Ericsson and mobilkom austria commercially launch HSPA Evolution (March 24, 2009)
  • Vodafone UK selects Ericsson to provide maintenance and operational support on its network, delivering cost savings (March 19, 2009)
  • Ericsson and Orange bring sustainable and affordable connectivity to rural Africa (February 19, 2009)
  • Ericsson launches Pixl8r and Social Media Portal (February 17, 2009)
  • Ericsson to provide managed services for T-Mobile UK and 3 UK to accelerate 3G network consolidation (February 16, 2009)
  • Ericsson launches Connected Home Gateway software enabling multimedia services to the home (February 13, 2009)
  • Ericsson achieves HSPA speed of 42Mbps with new multi-carrier technology (February 12, 2009)
  • Ericsson and Chunghwa Telecom deploy next-generation optical network in Taiwan (February 6, 2009)
  • Ericsson collaborates with Intel to bring theft protection to Mobile Broadband notebooks (December 12, 2008)
  • Ericsson to modernize T-Mobile’s core network in Slovakia (December 11, 2008)
  • Ericsson and 3 Scandinavia to bring first 21Mbps mobile broadband network to Europe (December 10, 2008)
  • Ericsson and Telstra world’s first to deliver Mobile Broadband at 21Mbps in commercial network (December 9, 2008)
  • Ericsson selected to manage 3G radio access network operations for T-Mobile and 3 UK (December 1, 2008)
  • Ericsson Collaborates With Intel to Bring HSPA Mobile Data Solutions to Intel’s Mobile Internet Devices (MIDs) (October 20, 2008)
  • Ericsson to further modernize and expand Grameenphone’s all-IP core network in Bangladesh (October 14, 2008)
  • Ericsson deploys GSM/EDGE network for Digicel in Panama (October 3, 2008)
  • Ericsson to provide mobile broadband for LG Electronics next-generation notebooks and netbooks (September 30, 2008)
  • Ericsson Extends Relationship for MMS Solution With Alltel Wireless in US (September 22, 2008)
  • Ericsson and Hanoi Telecom sign largest network modernization contract in Vietnam including full-scope managed services (September 1, 2008)
  • Ericsson expands mobile broadband HSPA with Softbank in Japan (July 21, 2008)
  • Ericsson to integrate and expand next-generation charging and IMS systems for Vodafone Ireland (July 11, 2008)
  • Ericsson to provide Mobile Softswitch Solution to PTC in Poland (June 10, 2008)
  • Ericsson selected to maintain Telefónica’s fiber optical network in Brazil (May 27, 2008)
  • bnetTV.com Speaks With Sony Ericsson at Their Lund, Sweden Campus (May 20, 2008)
  • Ericsson and Dell connect on HSPA in next-generation laptops (May 15, 2008)
  • Ericsson deploys IMS solution and signs WCDMA/HSPA contract with Brasil Telecom (May 9, 2008)
  • Ericsson to supply nationwide managed services for Telcel in Mexico (May 7, 2008)
  • Ericsson sole supplier of HSPA expansion and all-IP upgrade for SmarTone-Vodafone in Hong Kong (April 7, 2008)
  • Ericsson supplies Redback-based IP transport solution to mCel in Mozambique (March 26, 2008)
  • Napster and Ericsson Launch Mobile Music Service for UK’s Leading Wireless Carrier — O2 UK (March 18, 2008)
  • Ericsson signs major managed services agreement with Saudi Arabian operator Mobily (March 17, 2008)
  • Ericsson signs first consumer push e-mail contract with Aircel in India (February 11, 2008)
  • Ericsson sign first contract for Napster Mobile service in Latin America with Entel PCS in Chile (February 5, 2008)
  • Ericsson seals optical solution deal with Taiwan’s Chunghwa Telecom (January 8, 2008)
  • Ericsson to Supply Telephony Softswitch Solution to Algérie Télécom (November 28, 2007)
  • Ericsson completes T-Mobile Germany network modernization (November 5, 2007)
  • Ericsson selected by Deutsche Telekom for VDSL2 deployments in 12 cities across Germany (October 10, 2007)
  • Ericsson’s Managed Services Selected for Finnish Operator Elisa’s Enterprise Business (September 3, 2007)
  • Ericsson signs agreement to sell its Planet EV business to CTS International (June 6, 2007)
  • Other IT news about Infonetics Research

  • Infonetics Research: Network attached storage (NAS) appliance market to double by 2015 (June 13, 2011)
  • Infonetics Research: LTE equipment catches up to WiMAX; $245B to be spent on mobile equipment 2011-2015 (June 3, 2011)
  • Infonetics Research: Pay-TV services market hits $240B; subscribers still paying despite allure of free over-the-top (May 17, 2011)
  • Netflix, Hulu drive big jump in over-the-top media server market; set-top box demand is up (April 4, 2011)
  • 4G infrastructure market to hit $16 billion by 2015 (April 4, 2011)
  • Infonetics Research: Expansion, virtualization, cloud services drive data center markets (March 24, 2011)
  • Infonetics Research: Cisco propels SAN equipment market (March 16, 2011)
  • Huawei, Ericsson, Oracle lead fast-growing service delivery platform (SDP) market (March 8, 2011)
  • Threat trends, media coverage boost security markets; more buyers looking at cloud solutions (March 7, 2011)
  • Infonetics Research: Alcatel-Lucent jumps to #2 in IP router market (February 22, 2011)
  • Infonetics Research: Mobile services to hit $870 billion in 2014 as mobile broadband, messaging expand (January 21, 2011)
  • Infonetics Research: Telecom outsourcing thriving; Ericsson, NSN, ALU, Huawei: soon running 3/4 of world’s networks? (December 21, 2010)
  • Infonetics Research: Overall telecom carrier spending to pick up in 2011 due to video, 3G, LTE investments (December 15, 2010)
  • Infonetics Research: iPad boosts mobile broadband device market; smartphones overtaking mobile phones (November 12, 2010)
  • Infonetics Research: Huge growth expected in mobile security client software market in 2010 and beyond (October 22, 2010)
  • Infonetics Research: Policy management market on track to hit $471 million in 2010 (September 28, 2010)
  • Infonetics Research names Verizon, AT&T, NGT, Cbeyond, 8x8 among top business VoIP services leaders (May 13, 2010)
  • Infonetics Research: Security client software market up in a down year, with more growth coming (April 21, 2010)
  • Infonetics Research: DSL, cable broadband CPE market up 10%; strong growth expected for wideband devices (March 18, 2010)
  • Infonetics Research: VoIP services bring in $21 billion for service providers in 1H09; strong demand continues (November 2, 2009)
  • Infonetics Research: Carrier Ethernet equipment market projected to reach $34 billion in 2013 (September 29, 2009)
  • Infonetics Research: Ericsson and NEC neck and neck in growing microwave equipment market (September 15, 2009)
  • Infonetics Research: Mobile broadband services expected to more than double by 2013 (September 10, 2009)
  • WiMAX growing in India, Russia, Brazil, driven by basic broadband needs and VoIP (August 3, 2009)
  • Infonetics Research: Video on-demand server revenue tripling by 2013 (July 9, 2009)
  • Infonetics Research: Operator survey shows market reality of WiMAX services; VoIP a key component (July 6, 2009)
  • Infonetics Research: Most companies deploying NAC say the economy will not derail their 2009 spending plans (June 29, 2009)
  • Infonetics Research: Tumultuous first quarter for enterprise telephony market; Cisco still leads (June 23, 2009)
  • Infonetics Research: Strong quarter for IMS equipment; steep decline for carrier VoIP equipment market (June 9, 2009)
  • Infonetics Research: Microwave equipment market hits $4.9 billion in 2008, led by Ericsson and NEC (May 18, 2009)
  • Infonetics Research: Motorola sneaking up on Aruba in Cisco-dominated wireless LAN space (March 13, 2009)
  • Infonetics Research: WAN optimization market passes $1 billion in 2008, up 29%; enterprise router market down (March 10, 2009)
  • Infonetics Research: Network security market up 8% in 2008 to $5.5 billion, led by Cisco (March 6, 2009)
  • Infonetics Research: Mobile WiMAX market up 5% in 4Q08; Cisco, Huawei begin challenging market leaders (March 2, 2009)
  • Infonetics Research: Carriers name Motorola, Alcatel-Lucent, Alvarion, Huawei top mobile WiMAX vendors (January 23, 2009)
  • Infonetics Research: "Perfect storm" forcing mobile operators to upgrade networks and business models (January 16, 2009)
  • Infonetics Research: IP contact center market up 37%, UC market mixed in 2008 (January 6, 2009)
  • Infonetics Research: Cisco on Motorola’s heels in IP set-top-box market; 3Q IPTV/SDV equipment up 6% (December 29, 2008)
  • Infonetics Research: Oracle, Alcatel-Lucent lead fast growing service delivery platform market (December 22, 2008)
  • Infonetics Research: Ericsson, NEC lead fast growing microwave equipment market (December 17, 2008)
  • Infonetics Research: Cisco grabs lead in enterprise telephony market for first time; market up 8% in 3Q08 (December 15, 2008)
  • Infonetics Research: Service providers lean toward MPLS-TP over PBB-TE in new packet transport survey (December 12, 2008)
  • Infonetics Research: 3G W-CDMA equipment up 12% in 3Q; Nokia Siemens leads in mobile switch subsystems (December 11, 2008)
  • Infonetics Confirms MetaSwitch Leadership in VoIP Infrastructure Solutions (November 26, 2008)
  • Infonetics Research: Telecom carriers entering global economic crisis on solid ground; tough road ahead (November 25, 2008)
  • Infonetics Research: Service provider VoIP market down 8% in 3Q08 as large telcos scale back (November 24, 2008)
  • Infonetics Research: Ethernet microwave spending surges as operators upgrade mobile backhaul networks (November 10, 2008)
  • Infonetics Research: GPON sales up 77% in 2Q08, driven by Verizon’s FiOS buildout (November 3, 2008)
  • Investment in IPTV equipment continues despite subscriber slowdown (October 29, 2008)
  • HSPA expected to drive femtocell market; operators taking cautious approach (October 29, 2008)
  • FMC phones hit $7.6B in 2Q08; FMC network elements on target to grow 82% in 2008 (October 27, 2008)
  • Infonetics Research: Proliferation of spam and malicious code threats drive security market in 2Q08 (September 16, 2008)
  • Ericsson, Nokia Siemens widen RAN market lead; mobile softswitch market up 33% (September 8, 2008)
  • Infonetics Research: Carriers name Acme Packet, Alcatel-Lucent, Cisco and Sonus top VoIP vendors (July 28, 2008)
  • Infonetics Research: Cisco scores highest in new NAC user ratings; competition is close (July 17, 2008)
  • Infonetics Research: 802.11n products on the rise; Polycom steals #1 spot from Cisco in WiFi phone share (July 1, 2008)
  • Infonetics Research: Nortel, Nokia Siemens neck and neck in media gateway/softswitch market in 1Q08 (May 26, 2008)
  • Mobile backhaul equipment market set to skyrocket due to exploding mobile data/video use (May 16, 2008)
  • Metro Ethernet equipment sales up 27% in 2007, more carriers using and testing (May 7, 2008)
  • Infonetics Research: Cisco, Microsoft locked in battle for unified communications market (April 25, 2008)
  • Infonetics Research: T-Mobile USA, Orange heat up FMC infrastructure market; phones hit $27B in 2007 (April 14, 2008)
  • Infonetics Research: Internet content providers like Google buying growing portion of optical gear (April 1, 2008)
  • WiMAX equipment market up 46% in 2007, forecast to hit $7.7B in 2011 (March 3, 2008)
  • Enterprise telephony market tops $9.6 billion in 2007, IP phone shipments up 29% (March 3, 2008)
  • Infonetics Research: Very good year for carrier VoIP and IMS networking gear (February 29, 2008)
  • Mobile video phone sales will more than double to $125B by 2010, says Infonetics Research (November 6, 2007)
  • Study: 17% of North American organizations adopt 3G data by 2011, 11% adopt mobile WiMAX (October 26, 2007)
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