TMCnews Featured Article
February 24, 2012
Infonetics Projects Strong Growth in IP Softswitch by 2016
By Susan J. Campbell, TMCnet Contributing Editor
The consistent demand for IP communications continues to create new opportunities and drive market growth for leading companies in the carrier VoIP and IMS equipment market space. According to Infonetics (News - Alert) Research, high-growth segments will be kicking into gear in 2012.
This recent announcement included excerpts from Infonetics Research fourth quarter 2011 Service Provider VoIP and IMS Equipment and Subscribers vendor market share and forecast report. IP softswitch will benefit as Infonetics projects the global carrier VoIP and IMS equipment market will turn to a path of growth, reaching $3.8 billion by 2016.
The report shows that global telecom service provider sales of VoIP and IP Multimedia Subsystem (News - Alert) (IMS) equipment jumped 15.8 percent in the fourth quarter of 2011 to reach $690 million. The IP softswitch space was on a downward slide as the overall carrier VoIP and IMS market ended 2.1 percent in 2011 compared with 2010.
"The carrier VoIP and IMS equipment market surged in the final quarter of 2011, as it often does at the end of the year, but the more important measure is the year-over-year comparison, and from that vantage point the market is down 2 percent in 2011 from 2010 as legacy trunk media gateway and softswitch sales drag on the overall market," explained Diane Myers, directing analyst for VoIP and IMS at Infonetics Research, in a statement.
The majority of the overall market growth is being driven by IMS network deployments by service providers such as China Telecom, AT&T, China Unicom, Deutsche Telekom and NTT (News - Alert). These deployments include network transformation projects to handle the massive increase in data-hungry devices and growing consumer usage trends.
Myers added: "We'll see this trend shift starting this year as the high-growth market segments -- including IMS core equipment and session border controllers -- become collectively large enough to offset the ongoing declines of the legacy products."
Specific vendors, including Huawei, Alcatel-Lucent, GENBAND and Acme Packet (News - Alert), are enjoying the growth in the IP softswitch space, reporting notable growth in IMS and VoIP. More specifically, Huawei ended 2011 leading the overall market, with GENBAND (News - Alert) close behind.
The strongest fourth quarter regionally was reported in EMEA and North America, each posting sales growth in IMS and carrier VoIP of more than 20 percent. The biggest standout for this market, however, was Latin America as the region enjoyed a 34 percent increase in carrier VoIP and IMS equipment sales. VoIP and IP softswitch activity is expected to continue to grow in the region, especially in Mexico and Brazil.
Edited by Stefania Viscusi