Telecom, datacom spending to grow: Infonetics

NEW YORK, USA: Telecom and datacom equipment revenue tracked by Infonetics Research totaled $153.8 billion worldwide in 2009, down 5.2 percent from 2008 due to the global recession.

At the same time, worldwide annual telecom and datacom spending is forecast by Infonetics to grow to $208.3 billion in 2014.

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Jeff Wilson, principal analyst, Infonetics Research, said: "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 centre infrastructure and security in the enterprise, to broadband CPE and next gen OSS and policy software on the service provider side," explains Wilson.

Of the 11 major categories of enterprise and service provider equipment and software tracked, only two 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.

Cisco continues its commanding lead in the enterprise segment of the telecom and datacom network equipment market, and is now 5th in the service provider segment.

Ericsson, Huawei, ZTE and NEC are the only vendors to increase their market share in 2009.