At its annual Investor day in Stockholm, Ericsson issued a market forecast that estimates that the total network equipment market will show a compound annual growth rate (CAGR) of 3-5% from 2012 to 2015.
In Ericsson’s key equipment market segments – radio, IP and transport, core – the CAGR is expected to be 4-6%.
In radio a CAGR of 2-4% is expected, in IP and transport a CAGR of 6-8% and in core a CAGR of 0-2%.
Ericsson expects the market for telecom services to show a CAGR of 5-7% in the same time period.
The market for support solutions is forecasted to show a CAGR of 9-11%, including a CAGR of 12-14% for the media market. The market for OSS/BSS software and services is expected to show a CAGR of 5-7%.
“This development will naturally imply a future business mix for Ericsson with more recurring software and services revenues. However, hardware will always be part of the mix and a key differentiator for Ericsson,” said Hans Vestberg, Ericsson’s CEO.
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