Global Management Systems Expected to Generate $6 billion in 2015

Amount expected due to growth in use of mobile devices such as smartphones, tablet PCs and USB modems.
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The global network management systems (NMS) market will generate $6 billion (EUR4.4 billion) during 2015 because of the growth in use of mobile devices such as smartphones, tablet PCs and USB modems, says a report by telecom, media and technology adviser Analysys Mason.

During 2010, the NMS market generated $4.4 billion (EUR3.2 billion) in revenue, Analysys Mason says in its report NEMs’ network management systems: worldwide forecast 2011–2015.

In their efforts to increase service revenue, communications service providers (CSPs) are likely to focus investment on mobile broadband technologies, long-term evolution (LTE) in developed markets and high speed packet access (HSPA) in emerging markets, said Glen Ragoonanan, senior analyst at Analysys Mason and author of the report. Therefore, the compound annual growth rate for the NMS market is forecast to be 6.4 percent, the report says.

Take-up of mobile devices (such as smartphones, tablet PCs and USB modems) is growing rapidly as they become more affordable. As a result, communications service providers are investing in technology upgrades to increase mobile broadband capacity and provide a higher quality of service, according to Ragoonanan. Mobile backhaul, macrocell (LTE, HSPA), microcell (femtocells and Wi-Fi) and offloading transport (such as metro-Ethernet, optical transport and VDSL2) are the key investment areas for end-to-end mobile broadband, he said, and North America will lead LTE investments during the next two years.

Ragoonanan, lead analyst of the “Infrastructure Solutions” research program, says, “Optical national broadband networks (NBN) will support mobile backhaul in addition to the growth in fixed broadband services (such as IPTV), and over-the-top and cloud services. Asia–Pacific will take the lead in optical NBN investments during the next five years because of the lower labor costs in the region.”

LTE and optical NBNs are the two main areas of technology investment that will drive strong growth in the network management systems (NMS) market until 2013. IP services will continue to drive investments in business services and residential broadband NMS, while spending on public switched telephone network NMS will continue to decline during the next five years.