Telecom/Datacom Equipment and Software Market Poised for Steady Growth: Infonetics Research

The global telecom/ datacom equipment and software market is expected to grow from $160.1 billion to $209.1 billion between 2010 and 2015, according to Infonetics Research (News - Alert).

The entire world has gone through recession. Recovery from the recession continues slowly and unevenly. Despite recession, telecom and datacom equipment revenues continue to rise through 2015 at an overall compound annual growth rate (CAGR) of 5.5 percent, Infonetics Research said in its report titled “2011 Telecom and Datacom Network Equipment and Software report.”

The growth will be fuelled by service provider mobile and wireless infrastructure and enterprise and data center networks. These segments will make up the largest portions of revenue, and growth through 2015.

“The growth will be fueled by a wide variety or product segments, from communications and security in the enterprise, to service provider IP Multimedia Subsystems, routing, switching, and Ethernet,” said Jeff Wilson, principal analyst at Infonetics Research. “We are encouraged to see growth in all but two of the markets we track within this industry.”

Worldwide telecom and datacom equipment and software revenue totaled $160.1 billion in 2010, up 6 percent from 2009.

The overall telecom/datacom equipment and software market will grow to $209.1 billion by 2015. In 2010, the spending split was about 70 percent vs. 30 percent for service provider vs. enterprise equipment and software. By 2015, enterprise spending is expected to grow to 34 percent of the total while carrier spending drops to 66 percent.

Cisco is leading in the enterprise segment and datacom network equipment market, and is now 5th in the service provider segment.

Asia Pacific will remain the hottest spending region, fueled by 3G upgrades and LTE (News - Alert) in China, 3G and LTE rollouts in India, and LTE deployments in Australia, Japan, and South Korea.

Recently, another Infonetics Research report said that the global carrier Ethernet equipment market surpassed telecom capex. The size of the carrier Ethernet equipment market will touch $37.5 billion in 2015.

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