After big names like Alcatel-Lucent, Ericsson and ZTE reported poor half-year results, a new report predicts that network-management systems (NMS) growth will return next year as service providers deploy new network technologies and IP services in order to remain competitive.
In its "Worldwide NMS forecast, 2012-2016," researcher Analysys Mason says the market will grow from $4.7 billion in 2011 to $6.4 billion in 2016; that's a compound annual growth rate (CAGR) of 6.5 percent. It will be fueled by LTE and national broadband networks.
LTE rollouts are the major driver for investments in mobile NMS, the research firm said. Asia–Pacific and North America will drive most of this growth until 2013, while growth in Europe, the Middle East and Africa (EMEA) will improve after 2013. The economy is stifling growth in this space in Europe, where CSPs continue to have cost controls in place which will restrict investments in network equipment and NMS until the second half of 2013.
Other highlights of the report include: LTE, national broadband networks and cloud services will drive growth in business services NMS as CSPs invest in backhaul and transport networks, and enterprise IP services; China’s government aims to invest $58 billion (U.S.) in its Broadband China (FTTH) national broadband initiative, which will drive growth in the residential broadband NMS market; and spending on PSTN NMS maintenance is beginning to plateau as incumbents reduce their PSTN assets to the minimum required for guaranteed, quality voice services.