World Enterprise Media Gateway Markets 2010

Frost & Sullivan, December 2010, Pages: 89

This strategic analysis is part of Frost & Sullivan’s continued coverage of the world media gateway marketplace. Through extensive primary and secondary research, this analysis provides enterprise media gateway equipment vendors, service providers, value-added resellers (VARs), systems integrators (SIs) and other market participants with detailed analysis of the customer premises equipment (CPE) marketplace for infrastructure supporting PBXs, IP PBXs, unified communications, and VoIP and SIP trunking services. The study does not include estimates specifically related to revenues from installation, maintenance, managed professional, and telco services associated with premises-based gateway solutions.

This Frost & Sullivan research service titled World Enterprise Media Gateway Markets provides customer premise equipment (CPE) vendors and communications service providers with a detailed look at the dynamics of a changing market. In this research, Frost & Sullivan's expert analysts thoroughly examine how developments in the interrelated PBX and UC systems, VoIP access services, SIP trunking services, and enterprise session border controller markets affect the enterprise media gateway market.

Market Overview

Enterprise Media Gateways Market Set to Rebound, Bolstered by Increasing Deployment of UC and Next-gen Enterprise Network Architectures
The world enterprise media gateway markets are poised to grow in the near term, as media gateways provide the necessary capabilities for the deployment of IP communications applications and services in enterprises. Although the markets are mature, enterprise media gateways continue to evolve and play crucial roles in next-generation enterprise network architectures, supporting advanced communications services. Trends in telephony equipment shipments, which witnessed a downslide due to the economic downturn, have strongly impacted the enterprise media gateway markets. Enterprise media gateway revenues naturally declined as well. The world enterprise media gateway market is estimated to have garnered just under $1.5 billion in 2009 – a negative growth rate of 21 percent year-over-year from 2008. “After hitting bottom in 2009, the world enterprise media gateway market is expected to substantially recover in 2010, and return to a more stable, double-digit growth rate in 2011 and on,” notes the analyst of this research service. “Pent up demand for enterprise deployment of IP telephony and UC infrastructure will help the enterprise media gateway market to rebound in 2010 and peak in the next several years.” Media gateways are expected to witness a greater adoption, as they help protect existing investments and integrate multi-vendor solutions. Complexities in supporting multi-vendor and hybrid TDM/IP communications networks will stoke enterprise demand for traditional gateway transcoding, mediation, and connectivity functionality. Enterprises expect more choices in their solutions, and media gateways help expand the range of options.

The tough economic conditions of the past couple of years have constrained enterprise budgets. Enterprises are transitioning to IP with more conservative strategies than those of several years ago. This has impacted the sales of infrastructure components such as media gateways. Interoperability challenges have also impeded adoption of services, including VoIP access and SIP trunking, which are enabled by media gateways. Furthermore, the top-tier telcos have been less aggressive in promoting these advanced services, limiting enterprise awareness. Integration complexity and cost have slowed demand for gateways associated with UC and other IP-based communications applications. The professional services required for integrating the various infrastructure and application components that make up UC solutions have increased the overall cost. Adding to enterprise concerns is the rapid rate of R&D as well as discontinuation of product lines that raise questions about the overall viability of their technology investments.
The demand for basic media gateways that primarily serve to provide protocol translation and mediation will decline over time. Other approaches and actions are likely to be successful in the longer term. Enterprise communication architectures are evolving at a fast pace and individual infrastructure components must be repositioned to synchronize with new customer requirements. Vendors should identify media gateway roles and value propositions that will best resonate with business customers over the next few years. Gateway vendors are up to the challenge. “Purpose built gateways will continue to have their role due to scale, cost, management, and other concerns,” says the analyst. “However multi service gateways are regularly being enhanced with new capabilities that improve their overall value proposition, and flexibility, as well as extend their useful life.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Enterprise communications
- Unified communications
- Hosted IP telephony

Technologies

The following technologies are covered in this research:
- IP PBX systems
- TDM private branch exchange (PBX) systems
- VoIP access services
- SIP trunking services

1. Introduction

1.1 Market Definitions

1.2 Research Scope and Methodology

1.3 Executive Summary

2. Market Overview

2.1 Market Engineering Measurements

2.2 Evolving Enterprise Media Gateway Value Propositions

2.3 Market Overview

3. Market Trends and Challenges

3.1 Key Macro Market Trends

3.2 Key Enterprise Media Gateway Trends

3.3 Industry Challenges

4. Market Growth Drivers and Restraints

4.1 Market Growth Drivers

4.2 Market Growth Restraints

5. Market Size and Forecasts

6. Market Growth Highlights

6.1 Enterprise Media Gateway Market: Revenue Forecasts

6.2 Enterprise Media Gateway Market: Port Shipment Breakdown by Region

6.3 Enterprise Media Gateway Market: Port Shipment Breakdown by Application

6.4 Forecast Assumptions and factors

6.5 Demand Analysis

6.6 Pricing Analysis

7. Competitive Analysis

7.1 Competitive Structure

7.2 Competitive Analysis: Competitive Trends

7.3 Competitive Analysis: Vendor Market Share by Revenue

7.4 Competitive Analysis: Vendor Market Share by Ports

7.5 Competitive Analysis: Vendor Strategies and Positioning

7.6 Vendor Profiles

8. Conclusion

8.1 Strategies and Recommendations

List of Figures
Enterprise Media Gateway Market: Impact of Industry Challenges (World), 2009-2016
Enterprise Media Gateway Market: Market Drivers Ranked in Order of Impact (World), 2009-2016
Enterprise Media Gateway Market: Market Restraints Ranked in Order of Impact (World), 2009-2016
Enterprise Media Gateway Market: Competitive Structure (World), 2009

List of Charts

Enterprise Media Gateway Market: Applications and Gateway Types (World), 2009
Enterprise Media Gateway Market: Market Engineering Measurements (World), 2009-2016
Enterprise Media Gateway Market: Revenue Growth Forecasts (World), 2009-2016
Enterprise Media Gateway Market: Port Shipment Breakdown by Region (World), 2009
Enterprise Media Gateway Market: Port Shipment Segmentation by Application Type (World), 2009
Enterprise Media Gateway Market: Vendor Market Share by Revenues (World), 2009
Enterprise Media Gateway Market: Vendor Market Share by Port Shipments (World), 2009

-81Aculab
- ADTRAN
- Alcatel-Lucent
- AudioCodes
- Avaya
- Cisco Systems
- Dialogic
- Edgewater Networks
- Grandstream
- Multi-Tech
- Siemens Enterprise Communications
- Other Telephony Vendors
- Other Standalone Gateway Vendors

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