Market research firm Infonetics Research (Grove City, OH, USA) has released its third quarter "Service Provider VoIP Equipment and Subscribers" and "IMS Equipment and Subscribers" market share and forecast reports.
According to the report, the total service provider VOIP equipment market decreased 9% from last quarter, down to $511 million. While revenue is down for the quarter, shipments for almost all segments in the market are up. Asia Pacific is the only region expected to post year-over-year revenue growth in 2010 for service provider VOIP equipment. Genband led the combined carrier VOIP and IMS equipment market in revenue worldwide.
On the IMS front, the worldwide IP Multimedia Subsystem equipment market, including IMS core equipment and application servers, grew 4% in Q3, on the heels of a 34% jump in the previous quarter. Overall, the IMS equipment market is experiencing "strong and healthy growth, driven in the near-term by the continued adoption of VOIP services." In the long term, Infonetics expects the IMS market will get a boost from the push for enhanced mobile services, with LTE being the most significant driver.
According to Diane Myers, Directing Analyst for VOIP and IMS at Infonetics, "the number-one story that will come out of 2010 for the IMS and carrier VoIP equipment markets is China, where conditions are driving volumes up and pushing prices down. There are large network transformation projects underway in China, so demand for equipment is very strong, but at the same time, vendors are willing to push the pricing limits to get into strategic accounts."
Myers continues: "in the third quarter of 2010, every product category except media servers was impacted by pricing pressures, so while shipments were up for most segments, total worldwide revenue took a hit. Looking at the long-term prospects, the network elements that are best poised for solid growth are those that facilitate the migration to all-IP networks, such as session border controllers."