Despite marketing hype focused on VoIP, IMS and the Next Generation Network (NGN) packet technologies, SS7 Signaling System is not yet facing its final curtain, according to recent trend analysis of the SS7 Signaling market from VDC’s SS7 Market Opportunities and Requirements: Global Market Demand Analysis. While several new technologies have spurred proclamations of SS7′s demise, VDC research indicates the hybrid networks resulting from the introduction of these technologies will actually drive further SS7 signaling demand.
Derived from primary research into the expected purchasing plans of Service Providers and recent historical and current shipments of Equipment Vendors, VDC projects positive compound annual growth rates (CAGR) for SS7 Infrastructure Elements for the next five years.
These combined markets represent a multi-billion dollar opportunity.
“Carriers are incrementally adding new next-generation elements into their networks to support the transition to IP. This drives signaling gateway demand as they are used to facilitate the interconnection of new elements back into the legacy network,” states André Girard, VDC Analyst.
For example, a significant driver of SMSC revenues is the near-universal appeal of short message service (SMS) or “texting,” a service delivered primarily on the SS7 signaling network. This application motivates new subscriptions, expands minutes of use, and creates demand for network equipment and enabling technology. VDC believes this usage increase is also a strong contributing factor to the markets projection of 6% CAGR for Mobile Switching Center (MSC).
According to Girard, “Patterns of use continue to favor mobile communications over fixed and an increased use of value added services, VDC believes the resulting increase in signaling demand will encourage moderate growth for some segments of this mature market.”
Venture Development Corporation (VDC) is a technology market research and strategy consulting firm that advises clients in a number of industrial, embedded, component, retail automation, RFID, AIDC, datacom/telecom, and defense markets. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world’s leading technology companies, many high-profile start-ups, and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs, and custom research and consulting services. Founded in 1971, the firm is located in the Boston area.