Friday, February 10, 2012

[Infonetics]: Diameter Signaling Router Market to Grow at 106% (!) CAGR Through 2016

A new report by Infonetics Research forecast a very impressive growth to the young Diameter Signaling Router market.

Diane Myers (pictured), directing analyst for VoIP and IMS, notes that "Diameter traffic in the signaling and control plane of all-IP based networks is guaranteed to continue to increase, forcing operators to utilize Diameter signaling controllers to more efficiently manage and scale that traffic .. As LTE networks expand, driving even more traffic to the network, the Diameter signaling controller market will take off rapidly: we forecast a 106% compound annual growth rate in vendor revenue through 2016, in line with global growth in LTE networks and LTE subscribers".

5 years (to 2016), at 106% CAGR, means that 2016 vendor revenues will be 37 times the revenues made in 2011. Yankee Group, who is very optimisic on the DSR market as well, is a bit more modest. In a report issued last August they said "Diameter signaling is taking off. Yankee Group has seen significant request for proposal/request for information (RFP/RFI) activity and expects spending on IP-based Diameter signaling to more than double between 2011 and 2012—growing from U.S.$22 million to U.S.$45 million. And overall, we see the market mushrooming to U.S.$212 million in 2015, for a whopping CAGR of 57.2 percent" (here).

Back to Infonetics - "Several high-profile network outages have exposed weaknesses in Diameter signaling and proved how debilitating excessive signaling traffic could be to operator networks, including Verizon Wireless’ LTE network crash in early 2011 [here], Telenor’s 18-hour LTE network outage that prevented calls from connecting and text messages from being delivered, and NTT DoCoMo’s outage in January 2012 [herethat was attributed to Android devices, which load the network with control signals even when users are inactive".

"Tekelec has an early lead in this nascent market .. Infonetics expects at least 15 vendors to have diameter signaling controllers by the end of 2012 [my list of 8 - here], when market leadership will begin to take shape .. Today the majority of Diameter signaling controller revenue comes from North America, due in large part to leading LTE network deployments [here]; however, there is growing activity in Asia Pacific and EMEA as LTE continues to expand in those regions"

See "Mobile broadband, smartphones, LTE drive Diameter signaling controllers to 106% CAGR through 2016" - here.

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