ACG Research

ACG Research
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Friday, March 25, 2016

WORLDWIDE MOBILE IP INFRASTRUCTURE WILL GROW TO $7.4 BILLION BY 2020

Mobile data, LTE upgrades, all-IP transformation and services, and network modernization are expected to positively impact demand for mobile IP infrastructure

The Worldwide Mobile IP Infrastructure market is projected to increase from $4.5 billion to $7.4 billion by 2020. ACG Research anticipates that the total Mobile IP Infrastructure market will increase 15% in 2016 as well as increase in each successive year. Mobile IP Routing Backhaul revenue will increase 7.1% and Switching Backhaul revenue will grow 1.8% during the forecast period. The Packet Core, both Mobile Packet Core and Evolved Packet Core, will surpass 15% by 2020. Although major LTE roll-outs, mainly in the macrocell layer, were completed in 2015, there is continued pressure for more mobile data capacity as mobile broadband subscribers and smart devices continue to grow. Providers want advanced services such as WiFi calling and VoLTE, fueling the demand for packet gateways, control plane functions and virtualization. LTE Carrier Aggregation, 5G and IoT capacity planning are expected to positively impact demand for mobile IP infrastructure. Vendors continue to upgrade their networks and technologies, as densification will be the key driver behind demand for data, which is expected to increase.

The projected five-year growth will be strongest in the Americas region, CAGR +11.0%, followed by the EMEA, CAGR +10.5%, and APAC, CAGR +9.0%.

“In the next five years, service providers will continue to focus on LTE but also target ultra-network transformation, looking into new architectures that will allow them to capitalize on the existing networks, identify new revenue streams, and deliver high quality of experience, service agility and innovation,” says Elias Aravantinos, mobility analyst. “Service providers are looking at vendors’ solutions that will allow them to not only manage existing networks but also let them transform to next-generation networks with simplicity, scalability and, most importantly, with low failure risk services to preserve service viability and minimize network downtime.”

TREND AND DRIVER HIGHLIGHTS

To address the demand for capacity and average revenue per user pressures, service providers are looking at 5G technology as the engine to optimize the different parts of their networks and deliver faster, new and more profitable services. 

Mobile data traffic and 4G/LTE subs are projected to increase significantly during the next six years with operators responding with faster network deployments to satisfy subscribers’ demand, which is driven by video, for more capacity. 

Data centers, flexible virtualized platforms and new software modules are now changing the traditional physical infrastructure thinking over the next 6 years that will put pressures to operators as they need to manage and maintain both virtual and legacy networks. 

How networks proliferated by SDN and NFV will look in next 3 to 5 years will impact 5G standards and subsequent deployments. New network architectures delivering service agility, such as network slicing and virtual automated platforms, could save time and generate quick revenue.

For more information about ACG's mobility services contact info@acgcc.com.

    

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