March 29, 2005 Scottsdale, AZ -- The multi-service switch market rebounded in 2004 with worldwide sales of $2.3 billion, a 9% increase from 2003, says a report from In-Stat, a high-tech market research firm. According to the report, sales to service providers accounted for about 90% of total multi-service switch sales in 2004.
"2004 was a turnaround year, as service providers began spending to replenish capacity in their networks, add capacity for broadband aggregation, and offer new services such as MPLS IP VPN and Ethernet," notes Henry Goldberg, an In-Stat analyst. "Wireless service providers were a growing, important market for multi-service switch vendors, as they purchased this equipment for radio access network backhaul and other applications."
The report also found the following:
* A forecasted growth of 7% in worldwide multi-service switch sales in 2005, with a CAGR of about 6% over the next five years.
* The multi-service switch market is mature, and sales growth rates are expected to decline gradually over time, as service providers evolve to MPLS networks and products face stiff competition from routers.
* Nortel held the leading sales position for the fourth consecutive year, attaining a market share of 34% of total multi-service switch sales.
The report, "MultiService Switch Market Rebounds Nicely," forecasts the global multi-service switch market, and includes a percentage analysis of multi-service switch revenues derived from different application areas. The report also includes detailed profiles of prominent equipment vendors, including recent product developments and customers, as well as a profile of a major service provider covering present and future use of multi-service switches in their network.
The report is priced at $2,995.