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Recovery expected in 2010 for telecom/datacom equipment market
Posted: 16-Jul-2009 [Source: Infonetics Research]

[Research firm Infonetics Research reports 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]

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.

ANALYST NOTE

"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

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