SOURCE: Infonetics Research

April 19, 2007 20:00 ET

Worldwide telecom/datacom equipment tops $123B in 2006, will grow 20% by 2010, says Infonetics

CAMPBELL, CA -- (MARKET WIRE) -- April 19, 2007 -- Sales of service provider and enterprise telecom and datacom equipment topped $123 billion worldwide in 2006, up 9% from 2005, and is forecast to grow 20% to $148 billion in 2010, says a new report from Infonetics Research.

According to the report, Service Provider and Enterprise Telecom and Datacom Equipment, the 5-year compound annual growth rates for all segments tracked in the report range from flat to strong double digits from 2006 to 2010, with the IPTV and service provider VoIP and IMS equipment markets showing the most growth.

"The spending increase in the overall telecom and datacom equipment market is being fueled by service providers upgrading from TDM to IP packet networks to support voice, video, and data, as well as enterprises transforming their networks to integrate data, multimedia, and security," said Infonetics Research analyst Jeff Wilson.

Report Highlights

--  The IPTV equipment market will double its proportion of the total
    telecom/datacom equipment market between 2006 and 2010
--  Recent interest in NAC and the continued integration of security,
    traffic management, and other high-value functions into routers and
    switches will help boost the enterprise router and switch market through
--  The service provider router and switch market will experience steady
    growth due to a positive capex environment and a flurry of IP network
--  The network security appliance and software segment will continue to
    be a hot market because of the evolution of threats and increasing
    integration of security into the fabric of the network
--  Service provider products represent the majority of total
    telecom/datacom equipment sales, although its proportion of the total will
    decrease slightly as spending on enterprise products increases through 2010
--  The service provider next gen voice and IMS market represents 3% of
    the total telecom/datacom market now, growing to 5% in 2010
--  Cisco remains the revenue-leading vendor with 20% of the total
    worldwide market; Alcatel-Lucent is now 2nd
--  32% of 2006 telecom/datacom revenue came from EMEA, 30% from North
    America, 28% from Asia Pacific, and 10% from CALA; spending in Asia Pacific
    is growing the fastest
Infonetics' report compiles market size, market share, and forecast data for market segments the firm covers 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 revenue, and leading vendors. The report focuses on networking products, and excludes consumer electronics such as mobile phones, mobile video devices, consumer WiFi phones, and dual-mode WiFi/cellular phones.

Download sample data at For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research ( is an international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and carrier capex analysis.

Contact Information

  • Press Contact:
    Jeff Wilson
    Principal Analyst
    Infonetics Research
    Email Contact