A report released by market research firm Ovum (News - Alert) suggests that exploding Internet traffic will drive the demand for switches and routers in service providers’ networks. As a result, according to Ovum’s data, revenues in the global service provider switching and routing market will jump from $13.3 billion in 2010 to $20.5 billion by 2017. This data was posted on eWeek.com web site.
In a statement, David Krozier, principal analyst of network infrastructure at Ovum said, “it is going to cost carriers if they want to keep their customers.” Furthermore, he added, “Carriers will need to invest in growing their IP infrastructure or risk losing subscribers. In developing nations, carriers are building out their 3G wireless networks, while developed nations are investing in LTE (News - Alert) [Long-Term Evolution] to accommodate mobile bandwidth demand,” continued Krozier.
Based on industry observers, eWeek.com’s reporter Jeffrey Burt wrote that this bandwidth demand is putting more pressure on service providers. A report by analysts at IDC (News - Alert) was also posted on eWeek.com site. It stated that broadband traffic over fixed networks will jump 50 percent every year over the next three years, while traffic over mobile networks could essentially double every year into 2015.
The eWeek.com report quoted Matt Davis, director of consumer and SMB telecom services at IDC, as saying, "The enormous growth in end-user demand for both fixed and mobile broadband services is staggering." Davis added, "Despite enormous growth projected in IDC's forecast, it is difficult to overestimate this phenomenon. Fixed and mobile operators will have to deal with a new reality that will tax network resources to the limit—and perhaps past the limit."
As per the report, IDC analysts are forecasting that the global end-user demand for data will drive wired and mobile broadband traffic from the 9,665 petabytes per month in 2010 to 116,539 petabytes a month in 2015.
According to Ovum, as per the eWeek.com report, North America was the largest region last year for switches and routers for the service provider market, followed closely by the Asia-Pacific region, which includes China and Japan. However, the research firm predicts a 9.7 percent growth in the Asia-Pacific region for 2012, compared with 4 percent growth in North America. Thus, Ovum is expecting Asia-Pacific to become the largest market for service provider switches and routers this year, wrote eWeek.com.