Product Releases

Enterprise Telephony Market up 26% in Asia Pacific, down in North America

Wed, 06/11/2008 - 9:05am
According to communications market research firm Infonetics Research, the worldwide enterprise telephony market inched up 2% between 4Q07 and 1Q08, to $2.5 billion, with TDM, pure IP, and hybrid equipment sales all posting low single- digit sequential growth.

The report, Enterprise Telephony Worldwide Market Share and Forecasts, says the overall market is up 6% from one year ago (1Q07), buoyed by strong IP PBX systems equipment sales, despite falling TDM PBX/KTS equipment sales.

"In the first quarter of 2008, we saw some weakness in the North American and EMEA enterprise telephony markets, but it was offset by strong results in Asia Pacific," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

"Worldwide economic uncertainty could have a larger impact on this market than on others, since one of the prime drivers of PBX sales is the creation of new, and expansion of existing, businesses. While we've factored in a weak year for North America, we expect the overall worldwide PBX/KTS market to continue growing in 2008, at the end of which it will pass the $10 billion mark in annual revenue."

Other highlights from the report: •In Asia Pacific, TDM and IP PBX manufacturer revenue was up 26% sequentially (4Q07 to 1Q08). •The top 6 PBX/KTS system vendors in 1Q08 (in terms of lines shipped) are Nortel, Cisco, Avaya, NEC, Alcatel-Lucent, and Siemens (in that order); together, these vendors account for 3/4 of the market. •Cisco is the only vendor whose overall PBX market share is increasing: in CY07, Cisco added 3 points to their revenue market share, while Avaya, Nortel, and Siemens were all down slightly. Worldwide IP softphone shipments are up 76% sequentially (4Q07 to 1Q08).

For report highlights, log in to Infonetics' online portal from (see Enterprise Voice area). For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335. 408-583-3353


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