Global service provider network infrastructure market: 4% CAGR between 2012-2016

Press Release   •   Feb 26, 2013 10:55 GMT

The Global Service Provider Network Infrastructure market is to grow at a CAGR of 4.12 percent over the period 2012-2016. One of the key factors contributing to this market growth is the growing network traffic. The Global Service Provider Network Equipment market has also been witnessing increased adoption of network equipment in China. However, the decrease in prices of network equipment could pose a challenge to the growth of this market.

The increased adoption of network equipment in China. The Telecom market in China is currently witnessing growing demand for high-bandwidth networks, and China-based service providers are increasingly investing in fiber-optic networks as well as Long-term Evolution (LTE) technology to meet the growing demand for high bandwidth. In fact, investment in network equipment is increasing at a rapid pace in this country, and it is expected to become the largest market for service provider network equipment in the coming years.

The strong growth in network traffic across the world is driving this market. Over the years, there has been increased usage of online videos and other high-bandwidth applications across all the major geographies. Carrier Ethernet, which is increasingly being used by service providers, helps networks integrate different types of data traffic into a much simpler and more flexible network using packet switching and internet protocol (IP) protocols. Hence, service providers across the world are investing heavily in Ethernet equipment and adopting 40G and 100G equipment to manage and support the immense growth in data traffic.

The key vendors dominating this market space are Alcatel-Lucent, Cisco Systems Inc., Ericsson Inc., Huawei Technologies Co. Ltd., and Nokia Siemens Networks. The other vendors mentioned in the report are ZTE Corp., Juniper Networks Inc., Avaya Inc., IBM Corp., HP Co., NEC Corp., Aastra Technologies Ltd., Aruba Networks Inc., Bluecoat Systems Inc., Meru Networks Inc., Motorola Inc., Polycom Inc., Siemens AG, Snom Technology AG, and Brocade Communications Systems Inc.

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