Healthy Growth Projected for Telecom/Datacom Equipment Market

  • Infonetics Research
CAMPBELL, CA - Major network transformations are expected to drive growth in the telecom and datacom equipment and software markets through 2017, according to new Infonetics Research data. The research firm released excerpts from its annual "Telecom and Datacom Network Equipment and Software" report, which provides a big picture of the health of the overall market.

Michael Howard, co-founder of Infonetics and co-author of the report, adds, "Asia Pacific took the lead in telecom and datacom equipment spending in 2012, and we expect the region to continue leading at least for the next 5 years, contributing more than a third of global spending through 2017."


Telecom and Datacom Market Highlights

  • Following a recession-induced drop in 2009, the global telecom/datacom equipment and software market grew 19 percent in 2010, 7 percent in 2011, and held steady in 2012 at $172 billion

  • Going forward, Infonetics projects the telecom and datacom equipment and software market to grow at a 4.9 percent CAGR from 2013 to 2017, when it is forecast to hit $218 billion worldwide

  • During those 5 years, Infonetics expects service providers and enterprises to spend a cumulative $1 trillion on telecom and datacom equipment and software

  • The top 4 telecom/datacom equipment vendors in order by overall worldwide revenue market share are Cisco, Ericsson, Huawei and Alcatel-Lucent

  • Cisco maintains its commanding lead in the enterprise segment, while Ericsson is #1 in the larger service provider segment

Infonetics' annual telecom and datacom equipment and software report compiles worldwide and regional market size, vendor market share, and forecasts through 2017 from its reports that track enterprise and service provider gear. It is a subset of all data networking and telecom equipment for service providers, cable companies, and small, medium, and large organizations, and therefore excludes consumer electronics.

The 11 major categories of equipment and software tracked include broadband aggregation; broadband CPE; pay TV; optical network hardware; carrier routing, switching, and Ethernet; service provider VoIP and IMS; service provider mobile/wireless infrastructure; service enablement and subscriber intelligence; security; enterprise and data center networks; and enterprise communications.


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