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


Telecom/datacom equipment sales hit $139B in 2007; Alcatel-Lucent, Ericsson neck and neck in carrier space, Cisco dominates enterprise space

 

CAMPBELL, CALIFORNIA, July 22, 2008—Sales of service provider and enterprise telecom and datacom equipment hit $139 billion worldwide in 2007, up 13% from 2006, and are forecast to grow 26% to $174 billion in 2011, says a new report from communications market research firm Infonetics Research.

According to the report, Service Provider and Enterprise Telecom and Datacom Equipment, the 5-year compound annual growth rates (CAGRs) for all segments tracked in the report range from slightly negative to strong double digits from 2007 to 2011, with IPTV and IP video equipment growing the fastest, followed by service provider VoIP and IMS equipment.


“While service provider wireless and FMC equipment and enterprise routers, switches, and wireless LAN equipment make up the largest portions of revenue, the increases we’re seeing in the overall telecom and datacom equipment market are being fueled by the transformation to IP packet networks, as evidenced by strong growth in the IPTV and service provider VoIP and IMS segments,” said Jeff Wilson, principal analyst at Infonetics Research.


Other highlights from the report:

  • The largest equipment category, service provider wireless and FMC, will decrease its share of overall telecom/datacom revenue by 4 points between 2007 and 2011, as fast growing segments like IPTV and carrier VoIP and IMS gain share
  • About 1/3 of all 2007 telecom/datacom equipment revenue came from the Europe/Middle East/Africa (EMEA) region
  • China and India will drive a significant jump in carrier capital expenditures, or capex, in 2008 as a result of network construction projects combined with currency appreciation against the US dollar
  • Cisco leads the overall worldwide telecom/datacom network equipment market in 2007, followed by Alcatel-Lucent and Ericsson
  • Ericsson and Alcatel-Lucent are neck and neck as leaders of the service provider telecom/datacom equipment segment, while Cisco leads the enterprise segment with nearly half of worldwide revenue market share in 2007


Infonetics’ report compiles 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 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.


Companies tracked include Alcatel-Lucent, Avaya, Cisco, Ericsson, Fujitsu, Huawei, Juniper, Motorola, NEC, Nokia Siemens, Nortel, Samsung, Siemens, Tellabs, ZTE, and others.


Categories of equipment tracked include:

  • Broadband aggregation hardware
  • Broadband CPE
  • IPTV and IP video
  • Optical network hardware
  • Service provider metro Ethernet, routing, and switching
  • Service provider VoIP and IMS equipment
  • Service provider wireless and FMC
  • Enterprise routers, switches, and wireless LAN equipment
  • Enterprise telephony equipment
  • Network security


Download report highlights from our online portal by logging in above. 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 serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively. Infonetics covers a broad range of service provider, product manufacturer, and enterprise and SMB markets. Services include market share, forecasts, end-user and service provider survey research, custom research, and consulting.

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"The increases we’re seeing in the telecom and datacom equipment market are being fueled by the transformation to IP packet networks. . ."

Jeff Wilson
Principal Analyst, Infonetics Research