IP PBX and Carrier VoIP Equipment Sales Continue to Climb

Cisco passes Avaya in North American IP PBX market as revenues rise across the board for VoIP equipment.

By Sean Michael Kerner | Posted Sep 7, 2005
Print ArticleEmail Article
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn

The numbers speak for themselves when it comes to the impact VoIP related technologies are having.

IP PBX sales are up and Carrier VoIP Equipment sales have broken yet another record, according to stats from research firm Infonetics.

Carrier VoIP equipment
According to Infonetics, worldwide next-generation voice products revenue was up by 55 percent in the second quarter of 2005 over the previous year. The $614 million recorded in second quarter revenue was an 18 percent gain over the first quarter and a record quarterly increase, according to Infonetics.

By 2008, revenue is now forecast to hit $5.7 billion, and Infonetics expects VoIP penetration to be near 40 percent in the same time frame.

The forecast calls for a whopping 24.3 million residential and SOHO VoIP subscribers by 2008, up from 1.1 million in 2004. In Europe the number will rise to 27.8 million by 2008 up from 2.2 million in 2004.

IP PBX market up
The IP PBX market continues to grow as TDM [traditional] equipment revenues decline. Infonetics has reported that IP PBX sales hit $1.2 billion in 2Q05.

Overall global PBX/KTS revenues (IP PBXs included) grew to $1.6 billion in the second quarter of 2005 up by 12 percent over the first quarter. Shipment of Worldwide PBX/KTS unit shipments grew by 13 percent in 2Q05 from the previous quarter to a total of 131,000 units. By year end the total PBX/KTS worldwide tally is expected to be close to $7 billion.

TDM technology still represents the largest percentage of units shipped, however it does not account for the greatest percentage of revenue.

In terms of worldwide units shipped in 2Q05, TDM was first at 49 percent followed by hybrid at 42 percent, and finally pure IP at 9 percent.

In terms of revenue, 58 percent of PBX/KTS revenue comes from Hybrid PBXs, followed by TDM at 26 percent and pure IP AT 16 percent.

TDM is expected to decline to $759 million in revenue by 2008 down from $2.8 billion in 2003. In contrast, Infonetics expects that pure IP PBX revenue will more than quadruple and hybrid will nearly triple in the same time frame.

On a worldwide basis the top four IP PBX vendors retained their respective positions with Alcatel coming in first, followed by Nortel, Avaya, Cisco, and Mitel. In North America, however, Cisco passed Avaya this quarter, with Nortel leading the pack.

Infonetics analyst Matthias Machowinski explained however that if if you count all PBXs (TDM + IP) in North America (or Worldwide), Avaya is still ahead. "Avaya did not grow as fast as the overall market last quarter, while Cisco did," Machowinski told VoIPplanet.com. "In our end-user research, Cisco very often comes up as the top vendor organizations will buy their telephony gear from, partially because the purchase decision is shifting from the telecom group to the IT group, who knows Cisco very well."

Comment and Contribute
(Maximum characters: 1200). You have
characters left.
Get the Latest Scoop with Enterprise Networking Planet Newsletter