Multimedia Gateways Drive Mobile Internet Infrastructure Market Growth

November 30, 2011

According to data from the Mobile Internet Infrastructure research service from TeleGeography partner Synergy Research Group, mobile Internet infrastructure revenues exceeded $1.3 billion in Q3 2011, growing 21 percent since Q3 2010. Strong market growth is visible around the world, but the Asia-Pacific region is closing in on North America as the largest revenue generator.

Synergy defines mobile Internet infrastructure as the hardware and software that facilitate the use and operation of Internet applications on mobile networks. While revenue is growing in all major segments of the market, mobile multimedia gateways are the largest segment, accounting for 44 percent of Q3 revenues. Multimedia gateways are also the fastest growing segment, with revenues increasing by 36 percent between Q3 2010 and Q3 2011. While 2G/3G gateways still predominate, LTE gateways now account for 12 percent of shipments and are growing at an explosive rate, reflecting trends in mobile broadband subscriber growth.

Mobile Multimedia Gateway Market Growth

Source: Synergy Research Group

Cisco remains the market leader, accounting for 28 percent of global revenues in Q3 2011, followed by Ericsson and Alcatel-Lucent. Cisco’s market leader position is most closely contested in the Asia-Pacific region, where Cisco accounts for 22 percent of sales, but is followed closely by Ericsson, Nokia-Siemens, and Huawei. Within the mobile multimedia gateway product segment, Cisco and Ericsson are virtually tied for the market leader position, while Alcatel-Lucent continues to gain market share.

“With 3G subscriber numbers booming and 4G network launches increasing, we expect the mobile Internet infrastructure market to continue to grow at an average of 20 percent annually over the next five years,” said Synergy Research Group’s Jeremy Duke. “We anticipate that the battle for market leadership will become increasingly close as the the Asia-Pacific region and mobile multimedia gateways account for an ever larger share of the market.”

Synergy Research Group’s Mobile Internet Infrastructure Research Service provides data, analysis and forecasts of the mobile Internet infrastructure market.

Synergy Research Group is a strategic partner of TeleGeography, providing market intelligence, analytics and strategic consulting services to the networking and telecom industries.

To speak with an analyst, please call +1-202-741-0042 or email press@telegeography.com.