Networking market to recover in 2010: Infonetics

Global network equipment spending will slump this year, but will begin to recover in 2010, according to researchers Infonetics.

The market grew 8% in 2008, with worldwide revenue generating $150 billion, but the economic slump will hit home this year, Infonetics said.

“We expect a mild contraction in the overall telecom and datacom equipment market in 2009, and a recovery between 2010 and 2011, followed by strong growth through 2013, when worldwide revenue will reach $195 billion,” Infonetics principal analyst Jeff Wilson said.

Despite this year's slump, the market will still see growth in areas such as IPTV and video equipment, broadband customer premise equipment, and subscriber data, policy, and service management software, he added.

APAC is outperforming the global market, and will increase its market share by 5 points from 2008 to 2013.

The two largest segments of the market will continue to be wireless infrastructure spending from service providers, and routing, switching and LAN equipment spend from enterprises.

Cisco is currently the largest vendor of networking infrastructure by revenue, followed by Alcatel-Lucent and Ericsson, Infonetics said. Ericsson leads the carrier network equipment segment, while Alcatel-Lucent and NSN are neck and neck for second place.