Standalone voice over IP (VOIP) gateway revenues are on a turbulent flight pattern. Although the market grew in 1999 and will continue to grow, it experienced a shakeout that has clearly defined the leading players in this space, according to IDC.
"The shakeout of 1999 has served to define this segment more consistently in terms of market share and leadership," said Tom Valovic, manager for IDC`s IP Telephony research program. "A small group of vendors will continue to bump up against the remote-access server-based players and win sales in appropriate situations. Other vendors with less marketing muscle and technically upscale products will continue to sell into niche and Internet telephony service provider aftermarkets, and some will move away from the gateway hardware business."
Clarent is currently the leading vendor in this space. In 1999, its revenues skyrocketed 256%, landing the vendor in the market`s top position with 25% of worldwide revenues. IDC attributes Clarent`s success to its focused and aggressive market strategy and its penetration of European and Asia/Pacific incumbent markets.
IDC forecasts the worldwide market will surpass $2.1 billion in 2004. "Network expansion of pure-play Internet telephony service providers and new entrees to the market will drive much of the growth," Valovic said. IDC cautions, however, growth will slow in the 2001-2003 time frame. "Growth in the international toll bypass markets and changing product architectures for gateways, and increasing competition from RAS-based products will negatively impact the market`s growth."
Throughout IDC`s forecast, North America will represent the largest opportunity. However, growth in Europe and the Asia/Pacific region will also offer vendors significant revenue potential.
"The overall simplicity and purpose-built features of VOIP gateways will make them increasingly attractive in countries with little existing infrastructure," Valovic said.
IDC recently published Standalone VOIP Gateways: Market Analysis (IDC #B22774). This report analyzes the market`s 1999 performance, discusses emerging trends, and forecasts revenues and shipments through 2004. Vendors` 1999 market shares are also presented.
Share
International Data Corporation (IDC)
BMI-T has established a long-standing business relationship with the International Data Corporation (IDC). With research centres in over 40 countries and more than 500 research analysts and 3 900 clients world-wide, IDC provides a global market perspective on IT market and technology trends.
As the exclusive South African partner of IDC, BMI-T has instant access to IDC`s formidable knowledge base and consulting skills, and is positioned to offer African clients access to the full range of IDC `s global research.
For more information on IDC products and services, please visit IDCSA on http://www.info@bmi-t.co.za, or contact:
Laurika Kapp
IDCSA Accounts Manager
Tel: + 27 11 803-6412
Fax: + 27 11 803-784
E-mail: Laurika@bmi-t.co.za
BMI-TechKnowledge Group (BMI-T)
BMI-TechKnowledge (BMI-T) is Africa `s leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and broadcasting.
Formed over fourteen years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year.
BMI-T has an active ongoing research publications business that has consistently published research-based market analysis covering many facets of the IT, telecommunications and emerging media sectors. This knowledge base provides the platform on which we build our customised research and consulting, including assignments such as market entry strategies, product entry strategies, channel and distribution analysis and African research.
For more information please visit our Web site www.bmi-t.co.za