Dell'Oro Group Telco Equipment Spending Forecast

August 07, 2015

As stated in a recently published forecast report, the expectation for the overall Service Provider Telecom Equipment market is that it will see substantial growth for the five year period ending in 2019, as compared to the previous five year period.

The trends for the combined Service Provider Telecom Equipment market comprising the Access, Carrier IP Telephony, Microwave, Mobile RAN, Optical, SP Routers, SP Wi-Fi and Wireless Packet Core markets, are set to improve to the tune of $26 billion.

As the Internet of Things and M2M communications continue to grow, evolve and mature, it is obvious that the equipment which will connect everything and everyone will go through some changes. Change is said to be a good thing, and one thing that it will provide in the telecom industry is the need to keep pace with what IoT and M2M can deliver.
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This will lead to the production of new equipment in a variety of fields, as those listed above. As more M2M applications are being created, Internet connectivity will become essential to numerous heavy industries on a worldwide level.

The installed base of wireless IoT devices in industrial automation reached 10.3 million in 2014, The number of wireless IoT devices in automation networks is currently forecast to grow at a compound annual growth rate (CAGR) of 27.2 percent, which means that it will reach 43.5 million by 2020.

There is a wide range of wireless technologies used in industrial automation with different characteristics and use cases and this is only one small section in which we have seen telecommunication equipment needs change and grow. As more devices and people continue to connect over the next couple of years, we can only expect the equipment needs to also continue to grow.