Video Driving Growth in Service Provider Infrastructure Market: ACG Research Market Share and Forecast Reports

Share Article

Despite uncertain economic conditions and service providers’ caution, the Service Provider Video Infrastructure market grew (4.5% sequentially) in Q2 2011 to $3.5B.

Video, especially OTT, is expected to continue growing rapidly and flood networks particularly at peak times. This means big headaches for carriers as they need to carry this traffic, and they are being cut out of the value chain.

ACG research has released two reports on the Service Provider Video Infrastructure (SPVI) market: quarterly market size and share report and its semi annual market forecast. The Service Provider Video Infrastructure market continued growing (4.5% sequentially) in Q2 2011 to $3.5B. The growth was driven by over the top (OTT) video (Netflix, Hulu, YouTube and others), expansion of broadband/IPTV infrastructure build-out in developing countries and DOCSIS 3.0 expansions.

Cisco gained 3 share points from Q1 and now holds a dominating 65.8% share in CMTS; ARRIS is in second place with 23%. After trailing Motorola in IPTV set top boxes (STBs) by 4 share points in Q2 last year, Cisco now holds a commanding 57.3% share. Motorola continues to lead in cable STBs at 42.7% to Cisco’s 21.6% and Pace’s 11.2% share.

Over the top (OTT) video such and tablets continue to cause concern for vendors. Netflix is 50% of the peak hour traffic in North America and other research indicates that iPads now account for over 30% of mobile video viewing.

ACG forecasts that the total SPVI market will grow 10.5% CAGR over the next five years, with strongest growth in core and edge routing (15.5% and 18.5% respectively) and CMTS (14%). STB growth is slowing as the market matures and consumers are expected to shift viewing habits from traditional TVs and STBs to connected devices and tablets.

According to David Dines, principal analyst, “Video, especially OTT, is expected to continue growing rapidly and flood networks particularly at peak times. This means big headaches for carriers as they need to carry this traffic, and they are being cut out of the value chain.” He added, “as a result, service providers are looking for solutions such as CDN, caching and advertising platforms to help them reduce the load and find new business models for cashing in on the OTT gold rush.”

ACG focuses on providing market analysis and consulting to help service providers and vendors monetize their existing infrastructures and increase operational efficiency and profitability. ACG is uniquely qualified to develop the TCO analysis and white paper. ACG applies multi-disciplinary expertise and multidimensional solutions to complex business and technology issues, delivering greater strategic value than a one-dimensional firm. Each consulting engagement is uniquely structured — no forced methodologies or canned reports are employed. Our consultants’ collective experience is derived from leading firms across a broad spectrum of professional disciplines including management consulting, engineering, marketing, financial analysis, and IT management and operations. We combine advanced academic degrees with practical business experience.

ACG has extensive experience assisting vendors and service providers define and execute their marketing programs from determining their value proposition, positioning and messaging; to prioritizing marketing programs; to supporting execution by designing seminar series and developing and delivering compelling content such as keynote presentations, sales and analyst presentations, white papers, videos and articles.

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ray Mota
ACG Research
+1 408-200-0967
Email >
Visit website