Multimedia interactions are facilitated by media gateways over multiple transport protocols, such as asynchronous transfer mode (ATM) and Internet Protocol (IP) across next-generation networks. Interworking and media transcoding requirements are changing as new communications paradigms (VoLTE, WebRTC) emerge, and more media codecs are introduced. Staying ahead of the evolutionary curve requires a media gateway architecture that anticipates those changes and provides a simple, efficient path to higher capacities and new capabilities. Furthermore, Media Gateway for Mobile Networks (M-MGw) is a high-performance media plane product deployed globally. It is a solution to those challenges, and operators are facing today and in the future, such as how to optimize voice production costs and how to safeguard revenues in an evolving telephony environment.
- Besides, the expanding communication technology, and growing internet subscriber penetration, worldwide, hike the demand for beneficial, scalable, resilient, and low-cost communication solutions; therefore, these factors are anticipated to encourage the growth of the media gateway market during the forecast period. However, softswitches would diminish the demand for the deployment of innovative media gateway hardware in LTE networks, and the adoption of these softswitches over networks acts as a restraint for the media gateway market growth.
- The majority of the enterprises and service providers use wired media gateways to attain better control, security, reliability, and speed to manage the data traffic. The adoption of VoIP access drives the market for the wireline technology-based media gateways. Hence, these gateways are likely to hold the largest share of the overall media gateway market during the forecast period.
- As VoIP evolves, connectivity between different signaling protocols, conversion between voice compression protocols, and peering between IP networks are poised to be the next significant challenges in network design. The optimal media gateway evolves as the network grows. Integrated media and signaling support for ISDN, CAS, and SS7 provide an affordable way to help increase a service provider’s network presence in existing and emerging markets.
- Given the quick spread of COVID-19 and an increase in countries imposing restrictions on movement, the daily lives have required more time at home and more usage of data for work and leisure, resulting in a significant impact on the Telecom sector. COVID-19 has also resulted in a decrease in network resiliency and reliability for the consumers and has also impacted their planned investments, particularly in 5G, consequently affecting the media gateway market's growth.
Key Market Trends
Hybrid-based Media Gateways to Hold a Dominant Share of Market
- The changing technology makes an enterprise take extreme measures to prove complete control over their communication systems. Presently, it is challenging for an establishment to shift its whole Unified communication to VoIP, the latest technology. Though, there are many determinants to contemplate before taking such steps, such as current investment on their on-premises set up, adaptability with the existing architecture, systems, and hardware, as well as determinants like user adoption, the cost of implementation, and security concerns.
- Hybrid Communication solution combines IP and Analog - the best of two worlds for optimum utilization of IT infrastructure, providing agility and flexibility to organizations, meeting the changing requirements of small to large enterprises. Sometimes the Gateway comprises advanced telephony features to ensure cost-saving, investment optimization, asset utilization, and increased staff productivity, opening doors to newer applications and opportunities.
- As a result, companies adopt a hybrid UC environment, which provides a ‘best of both world’s’ experience. Communication systems that are compliant adequate to accommodate out-dated infrastructure as well as make most of the latest technologies are molding up the future. Flexibility and security being the principal requirement, hybrid Media Gateways facilitate enterprises to increase their communication capabilities smartly. Companies are inclined to avail of the advantages of IP networks while defending their present investment against changing communication technologies.
Market in APAC to witness Significant Growth During Forecast Period
- The Asia-Pacific is expecting the encouraging growth of the media gateway market during the forecast period. Large as well as small and medium enterprises are moving toward cloud-based services to reduce the costs related to technology infrastructure and to streamline operations. This contemporary shift in the decision for cloud-based services will affect market growth.
- APAC is a notable region over the world in terms of market share owing to the burgeoning need for media transcoding for next-generation networks and the demand for transcoding devices. Factors, such as the dependency of internet and telecommunication services and the evolution of 5G, create profitable growth possibilities for the media gateway market across the Asia-Pacific region.
- The emerging markets in this area are anticipated to be the most significant contributors to the extensive long-term growth of media gateways in the future despite the IP telephony presently being one of the practical options for connectivity in some developing nations across this region.
- Countries, such as India, Australia, Japan, Singapore, and China, are deeply dependent on the Internet and telecommunication services. The approval and adoption of these services enable businesses to focus on their core business goals.
The media gateway market is competitive and consists of some prominent members. In terms of market share, some of those big players currently dominate the market. These leading companies with a conspicuous share in the market are focusing on increasing their customer base across different nations. These players have fostered several strategies, such as product launches and developments, partnerships, acquisitions, and collaborations, to grow and develop in the media gateway market.
- April 2020 - Avaya Holdings Corp. announced that its Avaya OneCloud ReadyNow private cloud solution was recognized with a Unified Communications Excellence Award by TMC, a global, integrated media company. The award honors companies who have developed exceptional, unified communications solutions that are leading the way in this growing industry.
- February 2020 - AudioCodes, announced that it was selected by the leading Indian system integrator, HFCL Ltd, to supply voice access infrastructure components and devices for a multimillion US dollar, next-generation IP-based communications network to be rolled out by the Indian Army.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Requirement for High-quality Communication Over Disparate Networks
4.3.2 Media Gateways Providing Augmented Flexibility to Legacy Networks
4.4 Market Restraints
4.4.1 Dearth of Skillful Workforce to Add New Solutions in Existing Network
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Assessment of Impact of COVID-19 on the Industry
5.3 End User
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle-East and Africa
6.1.1 Nokia Corporation
6.1.2 AudioCodes Ltd
6.1.3 Ribbon Communications Operating Company Inc.
6.1.4 Avaya Inc.
6.1.5 Telefonaktiebolaget LM Ericsson
6.1.6 Huawei Technologies Co. Ltd
6.1.7 Cisco Systems Inc.
6.1.8 ZTE Corporation
6.1.9 Synway Information Engineering Co. Ltd
6.1.10 Dialogic Corp.
6.1.11 Mitel Networks Corporation
6.1.12 Grandstream Networks
6.1.13 Squire Technologies Ltd
6.1.14 Shenzhen Dinstar Co. Ltd
A selection of companies mentioned in this report includes:
- Nokia Corporation
- AudioCodes Ltd
- Ribbon Communications Operating Company Inc.
- Avaya Inc.
- Telefonaktiebolaget LM Ericsson
- Huawei Technologies Co. Ltd
- Cisco Systems Inc.
- ZTE Corporation
- Synway Information Engineering Co. Ltd
- Dialogic Corp.
- Mitel Networks Corporation
- Grandstream Networks
- Squire Technologies Ltd
- Shenzhen Dinstar Co. Ltd