Sunday, November 20, 2011

Infonetics Sees $3B Mobile Optimization and SON Market by 2015

Infonetics Research forecasts that "The mobile network optimization market, including 2G/3G optimization and 4G SON software, is forecast to grow to almost US$3.0 billion by 2015".

According to Stéphane Téral (pictured) "Both segments of the market are growing as telecom operators race to reduce their opex and capex, but SON is about to skyrocket: we forecast global SON software revenue to grow at an 84% CAGR from 2010 to 2015, and 2G/3G optimization software revenue to grow at 4%". Infonetics' market size chart shows a minor total growth in 5 years - so the SON market is very small.

A month ago, ABI Research forecasted that "In 2016, mobile network operators will spend more than $1.8 billion on web/video optimization" (here).
Other findings:
  • 78% of the world’s mobile subscribers are on 2G networks, the rest are on 3G, with 4G networks just getting started
  • 2G/3G optimization software makes up the majority of the overall MNO market, while SON software is growing the fastest, driven by growing LTE network rollouts
  • Smaller specialist vendors* in the mobile network optimization market are being increasingly squeezed by larger equipment suppliers** happy to throw in software as a value-add to the infrastructure they sell to telecom operators
While I do not have the report itself, I can see that Flash Networks, a major optimization player, is missing from specialists list and as well as the video caching/CDN vendors. I believe that getting content closer to the user technology will prevail, while other content manipulation/optimization techniques will be supersede by the client/server logic and pre-optimized content.

See "Mobile network optimization / self-organizing network (SON) market nearing $3B by 2015" - here.

*Specialist vendors: Actix, Aricent, Arieso, Ascom, Astellia, Axis Technologies, Bytemobile, Celtro, Commsquare, Eden Rock Communications, Infovista, InterDigital, Intucell, Mentum, Newfield Wireless, Plano Engineering, Reverb Networks, Schema, Symena, Theta Networks, TTG International, Tulinx, Vector, and Xceed Technologies

** Tier 1 mobile infrastructure vendors with mobile network optimization tool: Alcatel-Lucent, Ericsson, Huawei, Nokia Siemens Networks, and ZTE


  1. This report left out more than just Flash Networks. Mobixell as well as smaller optimization companies have been left out.. Doesn't seem like a very complete research on the optimization market. Maybe the focus was more on SON...

  2. Indeed.

    Mobixell, as well as Vantrix, Comverse and Openwave are missing.

  3. I agree that it is not complete, but Bytemobile has the lion share of the optimization market that it is a good proxy for the optimization industry in general.