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Voice over LTE Activity Sends Service Provider VoIP Equipment Market Up 12%

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The global service provider voice over IP (VoIP) and IP multimedia subsystem (IMS) equipment market grew 12 percent in 2014, to $4.2 billion, as operators continue to transform their networks to be simpler, more cost effective, and able to offer next gen voice services, chiefly voice over LTE (VoLTE).

In addition to a healthy annual gain, the carrier VoIP and IMS equipment market saw strong quarterly growth, up 21 percent sequentially in 4Q14, to $1.2 billion, with IMS comprising 58 percent of total sales

Market segments posting solid year-over-year growth in 4Q14 include trunk media gateways, session border controllers (SBCs), softswitches, voice application servers, call session control function (CSCF) and media gateway control function (MGCF)

To date, 15 operators in the US, South Korea, Hong Kong, Japan, Singapore, Romania and Denmark have launched commercial VoLTE services, including AT&T, Verizon, KT, NTT DoCoMo and TDC

All major geographical regions posted growth in 2014, but CALA (Caribbean and Latin America) was a shining star, notching 42 percent growth over 2013 due to the expansion of fixed-line VoIP networks

EMEA (Europe, Middle East, Africa) continues to see solid activity as VoLTE-related equipment sales are starting to kick in ahead of 2015 service launches by operators

The standout vendor in 4Q14 and for the full-year 2014 is Huawei, which outpaced the carrier VoIP and IMS market, taking 26 percent of worldwide revenue for the year

All the large network equipment vendors - Alcatel-Lucent, Ericsson, Huawei and Nokia Networks - are benefitting from VoLTE-related activity
Infonetics forecasts the worldwide service provider VoIP and IMS equipment market to grow to $4.6 billion in 2019


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Tags: volte  voip