August 24, 2005 San Jose, CA -- Worldwide total enterprise telecom and datacom equipment revenue totaled $57.5 billion in 2004 and will grow to $79.8 billion in 2008, according to a report from Infonetics Research.
According to the report, while enterprise switches and routers make up the largest portion of revenue today, growth in the next few years will be fueled by huge increases in service provider next gen voice services, and strong growth in broadband CPE, wireless LAN equipment, and network security, with enterprise telephony equipment making a strong surge as well.
"The increases in overall telecom and datacom revenue are a reflection of a generally healthy world economy," observes Jeff Wilson, principal analyst at Infonetics Research. "Two major market trends in the telecom/datacom sector independently sustain some amount of growth as well: first, people around the world are communicating over networks and the Internet via broadband, and second, service providers are migrating to a single converged data network that incorporates voice. Both of these trends come with security concerns."
Sample data from the report includes:
* Cisco is the leading vendor by far with 34% worldwide telecom/datacom product market share, due in large part to the company's overwhelming strength in enterprise switches and routers>
* Nortel and Alcatel are a distant second and third, with strong optical, voice, and broadband offerings.
* Many vendors have 2% to 3% market share; of these, Huawei and Juniper are expected to make the strongest gains in total telecom/datacom market share.
The "Telecom/Datacom Equipment Market Outlook" report compiles market size, market share, and forecast data for all market segments they cover to provide a big picture of the health of the market worldwide, including the overall contribution of revenue by major product categories, geographic distribution of telecom/datacom equipment revenue, and leading vendors.