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July 29, 2013

Telecom, Datacom Markets Expected to Grow Through 2017

By Oliver VanDervoort, Contributing Writer

A new report that takes a look at the future of the telecom industry indicates that the tech sector is going to have a very healthy next couple of years. That revelation isn’t actually much of a revelation at all, considering the number of different companies that are jumping into the business every day. Major network transformations are expected to drive the growth of the market. The telecom and datacom markets are expected to continue to grow exponentially through the end of 2017.

Infonetics Research (News - Alert) has released several different excerpts from its annual report, one of which states that Asia-Pacific has taken the lead in the telecom and datacom equipment spending market, and that the region is expected to continue to be in the lead through 2017. Michael Howard (News - Alert), the co-founder of the research firm, believes that the region will make up as much as one-third of global spending on this particular market.

There has been quite a bit of talk over the last few years that have shown that VoIP and Mobile VoIP will help drive the growth of telecom and datacom markets in the near future. This kind of technology will help lift the market out of the dips it has seen since the recession of 2008.

In total, Infonetics expects the datacom and telecom markets to grow at an annual rate of about 4.9 percent. By the end of 2017, that growth should have the total valuation of the markets somewhere in the $218 billion range worldwide. During this time period, the research firm expects service providers and enterprise level companies to spend a combined $1 trillion on telecom and datacom equipment and software.

Among the companies most likely to benefit from this growth is Cisco (News - Alert) in the enterprise sector, while Ericsson is expected to continue to hold onto the No. 1 spot in the service provider segment.

Edited by Alisen Downey
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