Economy Constrains Enterprise Voice Equipment Market
August 31, 2011
New data from TeleGeography partner Synergy Research Group reveal that global enterprise voice equipment vendor revenues declined four percent between Q2 2010 and Q2 2011, despite a 14 percent increase in port shipments. According to Synergy’s Enterprise Voice Research Service, revenues for the first half of 2011 declined one percent relative to H1 2010. Asia-Pacific was the only region that saw year-over-year growth in Q2 – enterprise voice revenues increased three percent relative to 2010. Meanwhile revenues in Europe, the Middle East, and Africa (EMEA) fell nine percent. PBX/KTS revenues experienced the greatest decline, falling nine percent from 2010, while the voice gateway and IP telephony segments experienced only modest declines.
Cisco’s worldwide market share remained relatively steady at 30 percent, while Avaya’s share increased from 19 percent to 22 percent over the last four quarters. The next five top-ranked players have all struggled in their attempts to hold on to market share, with Alcatel-Lucent and Siemens experiencing the largest declines. Cisco and Avaya both have strong market positions in all regions, and have gained substantial share in the Asia-Pacific region. The two companies’ combined market share in Asia has increased by 10 percent in the past four quarters, primarily at the expense of Siemens, Alcatel-Lucent, Oki, and Panasonic. Asia-Pacific market leader NEC’s market share has remained more stable at 24 percent.
Global Enterprise Voice Revenues and Port Shipments, Q1 2009-Q2 2011
Source: Synergy Research Group
By segment, the most notable shift in the 2011 vendor ranking is Avaya, which overtook Cisco as the market leader in IP telephony in Q1 2011, and continued to lead the market in Q2. NEC and Panasonic remain the clear leaders in the declining PBX/KTS segment, while Cisco dominates the voice gateway segment with a market share exceeding 80 percent.
“While we continue to forecast enterprise voice market growth over the next five years, global economic problems are dampening the market and constraining short-term growth,” said Synergy Research Group’s Jeremy Duke. “This is particularly evident in declining average port shipment prices over the last four quarters, and the sharp drop in enterprise voice spending in the EMEA region during the last two quarters. While the enterprise voice market is under pressure, revenues from associated Unified Communications applications continue to grow strongly, suggesting that enterprises are focusing on the efficiencies and business benefits to be gained from those applications.”
Synergy Research Group’s Enterprise Voice Research Service provides data, analysis, and forecasts of the enterprise voice equipment vendor market.
Synergy Research Group is a strategic partner of TeleGeography, providing market intelligence, analytics, and strategic consulting services to the networking and telecom industries.
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