Following are highlights from the first quarter 2018 edition of the IHS Markit Service Provider VoIP and IMS Equipment and Subscribers Market Tracker, which includes data for the quarter ended December 31, 2017. Author is IHS Markit analyst Diane Myers.
Global service provider voice over Internet Protocol (VoIP) and IP multimedia subsystem (IMS) product revenue fell to $4.5 billion in 2017, a decline of 12 percent year over year. Overall worldwide revenue is forecast to decline at a compound annual growth rate (CAGR) of 3 percent, falling to $4 billion in 2022. This decline is due to the slowing of voice over LTE (VoLTE) network deployments and overall spending falling into a steady pattern. Downward pricing — because of continued competitive factors and large deal sizes in India, China and Brazil — is also dampening growth.
“The big story over the past four years has been mobile operators and the transition to VoLTE, which has been the number-one driver of VoIP and IMS market growth, along with voice over WIFI (VoWiFi) and other mobility services,” said Diane Myers, senior research director, VoIP, UC, and IMS, IHS Markit. “However, after initial VoLTE network builds are completed, sales growth drops off, as operators launch services and fill network capacity,” she added.
Huawei was the standout vendor in the VoIP and IMS market, with 26 percent of worldwide revenue in 2017. Ericsson ranked second, with 21 percent, followed by Nokia, ZTE and Ribbon Communications.
Service provider VoIP and IMS market highlights
- As large VoLTE projects in India and China continued to expand, the Asia-Pacific region ranked first in global revenue in 2017, accounting for 37 percent of the market. Spending from VoLTE projects in Asia-Pacific and Caribbean and Latin America continue, but it is not enough to move the worldwide market back into growth territory, primarily due to price compression in both regions.
- As of January 2018, 119 operators launched commercial VoLTE services, with more coming every year. However, new launches are slowing. Most VoLTE launches in 2017 occurred in Europe. There was also some expansion in Chinese provinces, due to growth from China Mobile; in Brazil, with Vivo; and in India, with Bharti Airtel.
Service Provider VoIP and IMS Equipment and Subscribers report synopsis
The quarterly Service Provider VoIP and IMS Equipment and Subscribers Market Tracker from IHS Markit provides worldwide and regional vendor market share, market size, forecasts through 2022, analysis and trends for trunk media gateways, SBCs, media servers, softswitches, voice application servers, HSS, CSCF and IM/presence servers.