Aug, 2001 : VoIP Equipment Shows Strong Growth ? Synergy Report
📅 - Despite a general slowdown in other communication technology sectors, Voice over IP (VoIP) equipment sales continued their strong growth throughout the first half of 2001, according to reports by Synergy Research Group(synergyresearchgroup.com).
In Q2 and 1H reports released by Synergy, growth forpacket-based voice equipment outpaced other technologysectors.
In the first half of 2001, VoIP equipment salesrepresented $784 million, an increase of over 40percent over the same period a year ago. Ranked inorder with respective market shares, the top fiveequipment manufacturers contributing to this growthwere:
1. Cisco 40.6%2. Clarent 12.4%3. Sonus 12.3%4. 3Com 10.5%5. Lucent 2.9%
Synergy attributes this strong performance, in themidst of a more volatile general market, to therevolutionary proposition that VoIP technology posesfor the management of traditional voice calls, as wellas the evolutionary nature of the technology'sdeployment.
In Q2 2001, sales of Enterprise VoIP equipment reached$203 million, rising 87 percent from the same quarterlast year. Driving this growth is demand for LANTelephony (also known as IP PBXs) which are displacingtraditional PBX sales, as well as an increase in thenumber of enterprise equipment shipping with voiceDSPs.
Synergy tracks the LAN telephony market in two majorsegments: Enterprise Class (supporting over 100 IPphones) and Small Business Class (supporting under 100IP phones).
In the service provider arena, VoIP continues todemonstrate sizeable opportunity. As carriers seek tobuild out more cost effective and flexible networks,the equipment markets for VoIP Gateways, SoftSwitches, SS7 IP Gateways and ICD Gateways will stayconsistent with their proven growth trends.
Sales for this equipment segment were $196 million inQ2 2001 and voice port shipments grew to 1.2 millionports up 81 percent from the prior period.
In the quarter, the top five manufacturers for ServiceProvider VoIP revenues, ranked in order withrespective market shares, were:
1. Sonus 25.2%2. Clarent 22.6%3. Cisco 21.5%4. 3Com 9.3%5. Lucent 5.8%
The top three players all remained within five marketshare points of each other, exemplifying the extremecompetitive nature of this market. Synergy believesthis pressure will intensify, especially given thereduction of CLECs from the year ago period, as wellas increased competition from an emerging base of newcompetitors in this market.
Moving into the second half of 2001, Synergy ResearchGroup expects to see consistency in the Voice over IPmarkets with stable growth as major players in themarket continue to aggressively compete, hone theirsurvival skills and seek market dominance in a marketwhich Synergy expects to exceed $1.5 billion by year end.
In Q2 and 1H reports released by Synergy, growth forpacket-based voice equipment outpaced other technologysectors.
In the first half of 2001, VoIP equipment salesrepresented $784 million, an increase of over 40percent over the same period a year ago. Ranked inorder with respective market shares, the top fiveequipment manufacturers contributing to this growthwere:
1. Cisco 40.6%2. Clarent 12.4%3. Sonus 12.3%4. 3Com 10.5%5. Lucent 2.9%
Synergy attributes this strong performance, in themidst of a more volatile general market, to therevolutionary proposition that VoIP technology posesfor the management of traditional voice calls, as wellas the evolutionary nature of the technology'sdeployment.
In Q2 2001, sales of Enterprise VoIP equipment reached$203 million, rising 87 percent from the same quarterlast year. Driving this growth is demand for LANTelephony (also known as IP PBXs) which are displacingtraditional PBX sales, as well as an increase in thenumber of enterprise equipment shipping with voiceDSPs.
Synergy tracks the LAN telephony market in two majorsegments: Enterprise Class (supporting over 100 IPphones) and Small Business Class (supporting under 100IP phones).
In the service provider arena, VoIP continues todemonstrate sizeable opportunity. As carriers seek tobuild out more cost effective and flexible networks,the equipment markets for VoIP Gateways, SoftSwitches, SS7 IP Gateways and ICD Gateways will stayconsistent with their proven growth trends.
Sales for this equipment segment were $196 million inQ2 2001 and voice port shipments grew to 1.2 millionports up 81 percent from the prior period.
In the quarter, the top five manufacturers for ServiceProvider VoIP revenues, ranked in order withrespective market shares, were:
1. Sonus 25.2%2. Clarent 22.6%3. Cisco 21.5%4. 3Com 9.3%5. Lucent 5.8%
The top three players all remained within five marketshare points of each other, exemplifying the extremecompetitive nature of this market. Synergy believesthis pressure will intensify, especially given thereduction of CLECs from the year ago period, as wellas increased competition from an emerging base of newcompetitors in this market.
Moving into the second half of 2001, Synergy ResearchGroup expects to see consistency in the Voice over IPmarkets with stable growth as major players in themarket continue to aggressively compete, hone theirsurvival skills and seek market dominance in a marketwhich Synergy expects to exceed $1.5 billion by year end.
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