Numerous players hold a significant share in the global enterprise media gateway market, including AudioCodes Ltd., Cisco Systems Inc., Huawei Technologies Co. Ltd., Siemens AG, Alcatel-Lucent SA, Avaya Inc., ZTE Corporation, ADTRAN Inc., and GENBAND.
According to Transparency Market Research, despite the lack of external substitutes to enterprise media gateways, the availability of a large number of internal substitutes is a significant concern for players in the global enterprise media gateway industry in the coming years. However, the lack of product differentiation in the enterprise media gateway market at present has resulted in price-based competition, which has made the market more competitive and less commercially attractive.
Increasing Demand for IP-based Communication Beneficial for Enterprise Media Gateway Industry
One of the prime drivers for the global enterprise media gateway industry is the growing incorporation of communication technology working through the Internet protocol (IP) framework. The easy availability of advanced communication hardware and the ease of incorporating multiple communication channels in IP-based communication have driven the demand for the same in the last few years. Enterprise media gateways comprise a crucial part of the IP-based communication network, as they convert the signals from conventional phone lines into IP-compatible signals, and vice versa. As such, the enterprise media gateways industry is directly benefitted by the growing demand for IP-based communication.
“Another market driver closely linked to the growing demand for IP-based communication is the steady development of session initiation protocol (SIP) trunking. SIP is the core component that facilitates the connection between conventional and IP-based communication channels, and has thus enjoyed consistent growth in the last few years,” adds TMR’s lead analyst.
The solid emergence of cloud-based VoIP (voice over Internet protocol) services is another key driver for the global enterprise media gateway market. While the role of enterprise media gateways in the establishment of VoIP hasn’t changed, cloud support makes the delivery of VoIP services more flexible, more responsive, and more mobile. This is a crucial benefit for the corporate sector, as many large and medium-sized companies across the world have transferred or have started to transfer their operations to the cloud.
Widespread Prevalence of Legacy Systems to Restrain Demand for Enterprise Media Gateways
Despite the benefits of VoIP services, the reluctance among enterprises to embrace a new technological advance has helped preserve legacy systems. The emergence of VoIP services is also being opposed by cable and wireless companies, local exchange carriers, and Internet service providers. Non-VoIP services such as Google Voice and iCall also provide significant competition to the enterprise media gateways market.
Due to the high bandwidth requirements of VoIP services, media gateways require a stable and fast Internet connection. Thus, the unavailability of high-speed Internet in large parts of the developing world has also restricted the global enterprise media gateway market. However, the ongoing efforts to enhance the network infrastructure in several emerging economies will help the enterprise media gateway market establish a foothold in the coming years.
Telecom and IT to Remain Leading Consumer of Enterprise Media Gateways
By end use, the global enterprise media gateways industry is segmented into telecom and IT, healthcare, government, banking and insurance, media and entertainment, and others such as the defense and hospitality industries. Of these, telecom and IT is expected to account for 26.7% of the global enterprise media gateway market by 2020, with the segment’s annual revenue expected to reach US$549.4 mn by the end of 2016 and US$633.8 mn by the end of 2020.
Geographically, despite the robust 5.3% CAGR expected to be exhibited by the Asia Pacific market between 2014 and 2020, North America will remain the leading contributor to the global enterprise media gateways market in the coming years. The annual revenue of the North America market for enterprise media gateways is expected to reach US$680 mn by the end of 2016 and further rise to US$737.2 mn by the end of 2020.
The annual revenue of the global enterprise media gateways market is expected to reach US$2.1 bn by the end of 2016 and further rise to US$2.4 bn by the end of 2020. The information in this preview comes from a Transparency Market Research report, titled ‘Enterprise Media Gateway Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014-2020.’
The global enterprise media gateway market is segmented as follows:
Enterprise Media Gateway Market, By Enterprise Type
- Small-sized Enterprises
- Medium-sized Enterprises
- Large-sized Enterprises
Enterprise Media Gateway Market, By End-use Industry
- Telecom and IT
- Media and Entertainment
- Banking and Insurance
- Others (Defense and Hospitality)
Enterprise Media Gateway Market, By Geography
- North America
- Asia Pacific
- Rest of the World
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