Mobile Packet Core Equipment Market to Hit $1.8B This Year

ABI Research predicts that the mobile packet core equipment market will hit $1.8 billion this year and will earn a cumulative $10 billion over the next five years.

Overall, the mobile core network equipment market slipped 12 percent in Q1 of 2013 after an already sluggish 2012. However, mobile core packet equipment expanded 22 percent in Q1 of 2013 and grew 30 percent over last year's levels.

Even though the wireless network equipment market had some challenges in early 2013, demand for mobile packet core equipment continues to surge. Demand comes from consumers and businesses that are increasingly hungry for data.

Packet core technology converges voice and data on an IP service architecture so that voice is treated as a simple IP application. The technology allows carriers to deploy a single packet network for 2G, 3G, LTE, WiMAX, WLAN and fixed access networks.

Since LTE has become the core medium for network traffic, many carriers are no longer expanding their 2G and 3G networks. Mobile packet core technology and 3G/4G gateways give carriers the ability to transition traffic seamlessly between different types of networks.

Much of today's core equipment can transition from 2G, 3G and 4G with a simple software change. Gateways interface between LTE and other types of networks, performing deep packet inspection and managing Quality of Service (QoS).

By enabling connectivity between multiple types of networks, 3G/4G gateways reduce the need to upgrade 3G-network capacity by offloading traffic to other, more desirable types of networks. In addition, gateways increase data rates and performance, which enhances the customer experience. A better customer experience lets carriers upsell new, value-added data services.

Currently, ABI Research reports that Ericsson has the highest market share, but Huawei is becoming more competitive as the market trends toward 4G technologies.