Global IP PBX Market Continues to Grow
Nortel holds market share lead in North America with Avaya and Cisco in hot pursuit.
Momentum for IP PBX technologies continues to pick up steam. The latest third quarter Enterprise Telephony report from research firm Infonetics pegs worldwide quarterly revenues in PBX/KTX at $2.1 billion.
The third quarter number represents a 17 percent growth rate over the same quarter in 2004 and a 7 percent growth over the second quarter of 2005.
IP PBX revenues for the third quarter hit $1.7 billion, up from the $1.2 billion reported in the second quarter. Hybrid PBXs led the way in quarterly revenues, while pure IP PBX revenues alone only reported a 1 percent growth rate for the quarter.
The North American IP PBX market is currently lead by Nortel, with Avaya and Cisco wrangling for second place. Avaya was the big winner in the third quarter, though, increasing line shipments by 23 percent; Cisco's line shipments increased in the same period by only 2 percent.
According to Infonetics analyst Matthias Machowinski, the relative strength of Avaya in North America stands out. Machowinski noted that Nortel grew in line with the market, keeping their per-line market share steady at 21 percent.
"3Q05 is the end of Avaya's fiscal year, which partially explains their big increase," Machowinski told VoIPplanet. "Their line share is close to Nortel's (1 percent less), but Avaya is actually ahead of Nortel when measured in revenue."
As the market itself is nearly at the end of the fourth quarter, Machowinski has a few predictions about how the year end numbers will shape up. "My revenue forecast for 4Q05 is a 5 percent increase over 3Q05," Machowinski said. "CY05 overall should be up in the low double digits."
Infonetics isn't the only research group showing growth in enterprise VoIP in the third quarter.
Data from Synergy Research Group's Q3 2005 enterprise VoIP market shares shows a 30.6 percent year-over-year increase in the worldwide enterprise IP telephony market. According to Synergy Research's metrics, Avaya and Cisco were the worldwide leaders in Q3, each growing their enterprise IP telephony port shipment by almost 20 percent on a quarterly basis.
The US is responsible for the lion's share of enterprise IP line shipments at 47 percent of global share in Q3.