VDC Releases Report on SS7 Industry

2/16/2004 - The overall SS7 market is forecast to show some growth, according to VDC's recent report on "Signaling Products and Related Equipment in PSTN and Voice Over Packet Networks -Volume I: SS7 Related Equipment and Enabling Products." However it will never approach the levels it attained before the telecom meltdown in 2000. Many core markets have become saturated, and VoP is cannibalizing some SS7 sales.

Despite the SS7 Industry's slowing growth rate, the market for SS7 products still relatively large at $5.6 billion for SS7 Network Elements and over $960 million for Enabling Products. Many new opportunities continue to exist in this versatile market.

SS7-ENABLING PRODUCTS

  • SS7 Stacks - Within the Stacks segment, SIGTRAN stacks will cannibalize sales of traditional SS7 stacks and are the primary driver of Stack market growth.
  • SS7 Hardware Platforms - Are expected to grow at a faster rate than the overall SS7 Element Market, mainly because Network Equipment vendors are phasing out many of their proprietary platforms.
  • SS7 Boards - Within boards, High-Level Boards show the most growth with a CAGR of 18.3%. This rapid growth is attributed to the trend within enabling product vendors to provide more value-added products.

SS7 NETWORK ELEMENTS
Of the SS7 Network Elements covered, only SS7 Gateways appear to provide any significant opportunity.

  • SS7 Gateways - SS7 Gateways are growing rapidly at a 21.3% CAGR from 2002 to 2006, but the total market for SS7 Gateways will still remain too small to have a dramatic impact on the industry.
  • The larger products market of SCP/AP and SSP equipment both show a decline. Other elements show a slight incline with CAGR in the 3-4% range.

About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

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