The service provider and enterprise telecom and datacom equipment market is soaring, a new report shows. According to the latest from Infonetics Research, sales of such equipment hit $139 billion worldwide in 2007, a 13 percent increase from 2006.

This strong growth is expected to continue as Infonetics’ forecasts sales to grow 26 percent to $174 billion in 2011. This consist growth in sales shows a strong surge in demand for solutions that support integrated communications, analysts say.

The report, “Service Provider and Enterprise Telecom and Datacom Equipment” provides the 5-year compound annual growth rates for all segments tracked in the report. These growth rates range from slightly negative to strong double digits from 2007 to 2011, the report says. IPTV and IP video equipment are expected to grow the fastest, followed closely by service provider VoIP and IMS equipment, according to Infonetics.
 
“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, a principal analyst at Infonetics.

The report also highlights that the largest equipment category, service provider wireless and FMC, will decrease in share of overall telecom/datacom revenue by 4 points between 2007 and 2011. At the same time, the fast growing segments of IPTV and carrier VoIP and IMS are expected to gain share.

According to the report, roughly one third of all telecom/datacom equipment revenue came from the region that covers Europe, the Middle East and Africa. China and India are expected to drive a significant jump in carrier capital expenditures. This growth will be the result of network construction projects combined with currency appreciation against the U.S. dollar, Infonetics says.

When considering vendors, Cisco led the overall worldwide telecom network equipment market in 2007, followed by Alcatel-Lucent and Ericsson. The latter two companies are neck and neck in terms of the service provider telecom equipment segment.
 

Source:TMCnet