Where Is The TIS Market Headed Over The Next 5 Years? - Insights from the 2012 TBR Addressable Market Forecast
 

Where Is The TIS Market Headed Over The Next 5 Years? - Insights from the 2012 TBR Addressable Market Forecast

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The TBR Networking and Mobility research team recorded a webinar on May 14, 2013,recapping vendor performance reported in TBR's 2012 Addressable Market Forecast. This deck is from that presentation. ...

The TBR Networking and Mobility research team recorded a webinar on May 14, 2013,recapping vendor performance reported in TBR's 2012 Addressable Market Forecast. This deck is from that presentation.

TBR Analyst Chris Antlitz shared his perspective on the latest results and provided webinar attendees with additional insight into the performance and future opportunities in the telecom market. He will fielded questions from the audience related to this research.

Discussion topics included:

• When are operators going to start deploying LTE en masse?
• What types of services will be in most demand?
• Will the professional services market recover from the downturn in 2012?

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Where Is The TIS Market Headed Over The Next 5 Years? - Insights from the 2012 TBR Addressable Market Forecast Where Is The TIS Market Headed Over The Next 5 Years? - Insights from the 2012 TBR Addressable Market Forecast Presentation Transcript

  • TBR’s Telecom Infrastructure Services (TIS)Global Addressable Market Forecast 2012-2017Research Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar Series5.14.13
  • 2 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Chris AntlitzNetworking & Mobility Practice AnalystEmail: chris.antlitz@tbri.comTwitter: @chrisNMPWebinar Presenter
  • 3 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.TISTIS Overview•Opportunity model•Market share•Margin analysisTBR identifies the largest and fastest-growing servicessegments, enabling vendors to adjust their services strategyand tactics to capitalize on the best market opportunities.TBR’s research in Telecom Infrastructure Services (TIS) helps vendorsidentify growth opportunities and grow market shareOpportunity• More than $95 billion annualspend by GlobalCommunication ServiceProviders on professional,managed, deployment andmaintenance services• Identify leaders, strategies andgrowth opportunities in TISindustry to capture share fromcompetitors and hold off rivalsTBR’s Quarterly TIS Benchmark covers the top41 TIS suppliers by service type and regionDeploymentMaintenanceProfessional ServicesManaged ServicesNorth AmericaCALAEMEAAPACTIS Overview
  • 4 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.TIS Company CoverageAccentureAgilentAlcatel-LucentAmdocsAmerican TowerAtosBechtelBouygues ConstructionCapgeminiCGIChina CommunicationsConstructionCienaCiscoConvergysCrown CastleCSG SystemsCTDIEMCEricssonFujitsuGeneral DynamicsHPHuaweiHyundai Engineering &ConstructionIBMIndus TowersInfosysJabilJuniperMicrosoftNECNokia Siemens NetworksOracleOrascom ConstructionIndustriesSamsungSAPSBA CommunicationsTata Consultancy Services(TCS)Tech MahindraWiproZTETIS Company Coverage
  • 5 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.The AMF is TBR’s forward-looking view of where the TIS market is headedand offers both quantitative and qualitative forecastsTIS AMF OverviewTIS Addressable Market Forecast Value• Five-year market forecast identifying fastest-growingTIS segments, geographies and growth drivers• Pinpoints emerging trends in TIS and provides insightabout how the industry is developing• Identifies major growth areas in TIS and highlightswhat will drive that growthTop-down analysis of global TIS market with five-yearprojection• Market sizing and market share from a global orNorth America-specific perspective• CAGR and trending analysis across services andregions• Forward-looking view helps TIS suppliers prepare tocapitalize on growth opportunitiesAddressable Market Forecast (AMF)TBR leverages its knowledge of TIS fromthe benchmarks to build a projection ofwhere the global TIS industry is headedand what the major growth drivers,opportunities and challenges will be overthe next five years.TBR also publishes an AMF that drillsdown on the North American market. Itprovides a comprehensive assessment ofNorth America and focuses on growthdrivers, opportunities and challenges thatare specific to that region.
  • 6 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Key TIS Growth DriversKey TIS Growth DriversBroadband DeploymentsOutsourcingBusiness Model TransformationTIS market projected to grow at 2.2% CAGR through 2017 as operatorsdeploy next-gen technologies and evolve their business models for growth
  • 7 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.LTE deployments will peak globally in 2014; the LTE investment wave willalso drive maintenance, professional and managed servicesServices Segment Forecast• Growth correlates closely with LTE deployments• Outsourcing to remain popular opex reduction tool for operators• Business model transformation to drive professional services$24.5 $26.5 $29.6 $28.2 $26.8 $26.0$25.1 $26.6 $28.7 $28.1 $27.6 $27.0$23.3 $24.0 $25.2 $26.2 $26.7 $27.2$22.1 $22.8$23.5 $24.2 $24.9 $25.7$0$20$40$60$80$100$1202012 2013 2014 2015 2016 2017TIS Addressable Market by Services Segment (BUSD)Deployment Services Maintenance ServicesProfessional Services Managed ServicesSOURCE: COMPANY DATA AND TBR ESTIMATESESTIMATES
  • 8 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Growth in early years of forecast will track broadband deployments;focus turns to new business model development in later yearsProfessional Services Sub-segment Forecast• Operator consolidation, LTE, SDN, and NFV to drive C&SI growth• OSS/BSS modernization and transformation critical to evolve business models• Security and application integration are fastest growing spend areas$1.1 $1.2 $1.3 $1.3 $1.3 $1.3$1.6 $1.8 $2.0 $2.0 $1.8 $1.8$1.3 $1.3 $1.4 $1.6 $1.6 $1.6$1.6 $1.6 $1.7 $1.9 $1.8 $1.8$6.2 $6.6 $6.9 $7.1 $6.7 $6.5$2.4 $2.6$2.8 $2.9 $2.8 $2.8$1.5$1.7$1.8 $1.9 $1.8 $1.8$7.6 $7.3$7.1 $7.6 $8.9 $9.6$0$5$10$15$20$25$302012 2013 2014 2015 2016 2017TIS Addressable MarketProfessional Services Sub-Segments (BUSD)Application IntegrationBSS IntegrationOSS IntegrationNetwork Infrastructure IntegrationTraining ServicesSecurity ServicesPlanning, Design and OptimizationConsultancy ServicesSOURCE: COMPANY DATA AND TBR ESTIMATES
  • 9 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.EMEA operators will stretch out the duration of LTE deployments throughthe forecast period until economic and political clarity becomes evidentGeographic Spend Forecast: Global• Global TIS spend peaks in 2014 with LTE deployments• LTE spend in North America peaks in 2013• EMEA operators to stretch out LTE investment through forecast period$37.7 $42.5 $42.5 $41.4 $40.5 $39.8$31.2 $30.8 $34.0 $35.3 $36.4 $37.1$26.1 $26.5 $30.5 $30.0 $29.0 $29.0$0$20$40$60$80$100$1202012 2013 2014 2015 2016 2017TIS Addressable Market by Geography (BUSD)Americas EMEA Asia PacificSOURCE: COMPANY DATA AND TBR ESTIMATESESTIMATES
  • 10 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Tier 1 operators in the U.S. are the primary drivers of TIS spend in theAmericas, and the forecast correlates closely with their LTE deploymentsGeographic Spend Forecast: Americas• LTE and operator consolidation will drive TIS growth in U.S., particularly forprofessional services• CALA operators incentivized by governments to rapidly deploy LTE• CALA operators will embrace managed services to stay competitive$30.5 $34.5 $33.5 $33.0 $32.5 $32.0$7.2$8.0 $9.0 $8.4 $8.0 $7.8$0$10$20$30$40$502012 2013 2014 2015 2016 2017TIS Americas Addressable Market (BUSD)North America Caribbean & Latin AmericaSOURCE: COMPANY DATA AND TBR ESTIMATES
  • 11 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Network modernizations in Europe will be complete in 2013, giving wayto sustained growth in spend to deploy LTE across the regionGeographic Spend Forecast: EMEA• TIS spend in EMEA declines in 2013 due to Europe recession, but bounces backstrong through rest of forecast• Europe ripe for OSS/BSS overhaul and LTE following RAN modernizations• Some Middle Eastern operators will be early adopters of new technologies• Africa to lag in LTE deployment; many operators in region still focused on 3G rollout$21.4 $20.9 $23.5 $24.6 $25.6 $26.1$9.7 $9.9$10.5 $10.6 $10.8 $11.0$0$10$20$30$402012 2013 2014 2015 2016 2017TIS EMEA Addressable Market (BUSD)Europe Middle East & AfricaSOURCE: COMPANY DATA AND TBR ESTIMATES
  • 12 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Asia Pacific is moving at different speeds, with LTE builds largelycomplete in South Korea and Japan; China is next in line to roll out LTEGeographic Spend Forecast: APAC• LTE spend in South Korea and Japan peaked in 2012• China Mobile kicks off massive LTE deployment in 2H13• Rest of Asia to ramp up investment in 2014$11.2 $11.5 $13.5 $12.6 $12.4 $12.4$6.4 $6.5$7.5 $8.2 $7.6 $7.6$8.5 $8.5$9.5 $9.2 $9.0 $9.0$0$5$10$15$20$25$30$352012 2013 2014 2015 2016 2017TIS Asia Pacific Addressable Market (BUSD)Northeast Asia Central Asia Southeast Asia/OceaniaSOURCE: COMPANY DATA AND TBR ESTIMATES
  • 13 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Consolidation will be a recurring theme as suppliers seek to bulk up theirportfolios and access new markets; Ericsson to stay leader by wide marginTIS Supplier Market Share• Despite ongoing M&A, TIS market will remain highly fragmented• Software firms are primary acquisition targetsEricsson15%NSN10%Huawei7%IBM6%Alcatel-Lucent5%HP4%Cisco4%Accenture3%Amdocs3%Fujitsu3%Other Suppliers40%EricssonNSNHuaweiIBMAlcatel-LucentHPCiscoAccentureAmdocsFujitsuOther SuppliersSOURCE: COMPANY DATA AND TBR ESTIMATESTelecom Infrastructure Services Market Share in 2012
  • 14 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.ConclusionsConclusionsTIS spend growth correlates closely with LTE deploymentsOutsourcing to remain popular opex reduction tool for operatorsBusiness model transformation to drive professional services
  • 15 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.TBR Networking & Mobility Practice Syndicated Topics 1Q13: Telecom VendorsQuarterly Topics TBR Value Proposition Related ReportsNetwork FunctionVirtualization• Determine which vendors are the early leaders in technologies suchas software-defined networking and self-organizing networks.• Evaluate vendor network function virtualization (NFV) road maps.Alcatel-Lucent,Cisco, Ericsson,IBM, Juniper, NSN,Samsung, ZTELTE Deployments • Identify which vendors are LTE leaders in revenue and contractcount.• Determine in which regions LTE is being deployed.• Anticipate the next regional shift of LTE revenue.Alcatel-Lucent,Cisco, Ericsson,NSN, Samsung, ZTEEnterpriseSolutions• Determine which vendors are expanding their addressable marketsto cater to the enterprise sector.• Identify which vendors are making a strategic push into enterpriseservices, such as consulting and systems integration.• Analyze which vendors are likely to succeed and which are mostlikely to spread themselves too thin by catering to the enterprise.Alcatel-Lucent,Ericsson, Huawei,NSN, Samsung, ZTEConsolidation • Track developments in vendor M&As, identifying which playersneed to acquire to enhance their portfolios or enter new markets.• Analyze the impact of operator consolidation on the telecominfrastructure and services markets.Alcatel-Lucent,Cisco, Ericsson,Juniper, NSN,Samsung, ZTETBR conducts a major review of the telecom industry on a quarterly basisand identifies key topics to integrate into its syndicated reports
  • 16 TBR Quarterly Webinar Series | 5.14.13 | www.tbri.com | ©2013 Technology Business Research Inc.Chris AntlitzAnalyst, Networking andMobility Practicechris.antlitz@tbri.com@chrisNMPQuestions?For further information, please contact:Kate Price James McIlroyPractice Manager, Networking & Mobility Vice President of Saleskate.price@tbri.com mcilroy@tbri.comQ & A@TBRincwww.slideshare.net/TBR_Market_Insightwww.youtube.com/user/TBRIChannel
  • About TBRTechnology Business Research (TBR) is a leading independenttechnology market research and consulting firm specializing in thebusiness and financial analyses of hardware, software, networkingequipment, wireless, portal and professional services vendors.Serving a global clientele, TBR provides timely and accurate marketresearch and business intelligence in formats that are tailored toclients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietaryconsulting basis.TBR has been empowering corporate decision makers since 1996.To learn how our analysts can address your unique business needs,please visit our website or contact us today.Contact Us1.603.929.1166info@tbri.comwww.tbri.com11 Merrill DriveHampton, NH 03842USAThis report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Researchwill not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to beinvestment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole useof the recipient. Contact Technology Business Research, Inc. for permission to reproduce.