Forecast: Telecom, datacom equipment spending to surpass $200 billion by 2014

Aug. 5, 2010
Worldwide annual telecom and datacom spending is forecast by Infonetics Research to grow to $208.3 billion by 2014.

Telecom and datacom equipment revenue tracked by Infonetics Research totaled $153.8 billion worldwide in 2009, down 5.2% from 2008 due to the global recession. Worldwide annual telecom and datacom spending is forecast by Infonetics to grow to $208.3 billion in 2014.

Of the 11 major categories of enterprise and service provider equipment and software tracked, only 2 posted revenue growth in 2009: IPTV and video, and next-gen OSS and policy.

The telecom/datacom market in the EMEA region (Europe, Middle East, Africa) was hit hardest by the recession in 2009, and spending in Asia Pacific surpassed spending in EMEA for the first time, reveals excerpts from Infonetics Research’s 2010 Telecom and Datacom Network Equipment and Software report.

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Further, Cisco continues to lead the enterprise segment of the telecom and datacom network equipment market, and now ranks fifth in the service provider segment. Ericsson, Huawei, ZTE, and NEC are the only vendors to increase their market share in 2009, according to the report.

"Businesses and service providers around the globe are starting to spend again on telecom and datacom equipment and software in 2010, and indications right now are that spending will accelerate through 2011 as the global economy stabilizes. Long-term growth in telecom product spending through 2014 will be fueled by a wide variety of segments, from data center infrastructure and security in the enterprise, to broadband CPE and next gen OSS and policy software on the service provider side," explains Jeff Wilson, principal analyst at Infonetics Research.

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While worldwide spending on service provider IP edge routers declined overall in 2009, spending on high-speed 40G ports on IP edge routers increased 125%. A similar trend is playing out in other routing and switching segments and in the optical network hardware space. This is the clearest indication yet that service providers are turning to higher-speed options for their next-generation networks to handle skyrocketing traffic, explains an Infonetics Research spokesperson.

Infonetics' Telecom and Datacom Network Equipment and Software report compiles worldwide and regional market size, market share, and forecast data for the network equipment and software markets Infonetics tracks. The report includes analysis of revenue by product category, geography, and vendor. Companies tracked include Alcatel-Lucent, Avaya, Cisco, Ericsson, Fujitsu, Huawei, Juniper, Motorola, NEC, Nokia Siemens, Nortel, Samsung, Tellabs, ZTE, and others.

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