Published: 10/10/2017
Author: Greg Collins, Exact Ventures

In 2Q17, the total (SP + enterprise) SBC market rose 4% both sequentially and year-over-year to reach $297 M. During the quarter, the enterprise (E-SBC) grew 10% Y/Y to $140 M, accounting for 47% of the total market, while the service provider (SP-SBC) segment was down 1% over the same timeframe. The Y/Y decline in the SP-SBC segment was due to weakness in the wireline segment which fell 4% Y/Y to $80 M.

The total market grew 16% in 2016 to $1.2 B as both the E-SBC and SP-SBC markets continue to benefit from continued migration to IP services. We forecast that these trends will continue in 2017 and that the SP-SBC and E-SBC markets will grow by 12% and 15%, respectively, and that the total market will reach $1.3 B. The SP segments will be driven by a 7% increase in the wireline market and a 17% increase in the wireless/VoLTE category.

SBC chart 2Q17