V-o-i-p spells opportunity
With the Voice over Internet Protocol (VoIP) market expected to experience a strong expansion through the remainder of the decade, this segment has become a key growth driver for telecom equipment suppliers, according to iSuppli Corp.
Worldwide VoIP equipment revenue will rise to $11.9bn in 2010, expanding at a compound annual growth rate (CAGR) of 24.7 per cent from $3.95bn in 2005.
The VoIP market encompasses three user segments: Private Branch Exchanges (PBXs) for enterprises, infrastructure operated by service providers and residential-access equipment. At the end of 2005, the PBX segment accounted for 46 per cent of VoIP equipment revenue, while infrastructure and residential gear each took a 27 per cent share.
Looking at the enterprise/PBX segment, VoIP equipment revenue growth is being driven by a number of factors, including:
u The need for service providers and enterprises to control capital expenditures and operating expenses.
u The introduction of new PBX features for enterprise equipment.
u The drive to networks that are completely based on IP.
Meanwhile, the number of residential VoIP subscribers worldwide is expected to increase to 151.2m by 2010, rising at a CAGR of 57.1 per cent from 15.8m in 2005. The residential segment is the second-largest market for VoIP gear.
Residential VoIP product revenues are projected to grow at a CAGR of 31.1percent, rising to more than $4.1bn in 2010, up from $1.1bn in 2005.
With the possibilities for OEMs and suppliers, V-o-I-P spells opportunities for equipment makers. u
For more information, visit www.isuppli.com
"