So here we are in the middle of Spring 2015 and the temperature is beginning to rise, yes finally here in New England the temperature is beginning to rise after such a harsh winter. What is also on the rise according to ACG Research is the Cisco IP Infrastructure Market-Share. ACG published today their 1st Quarter 2015 Mobile IP Infrastructure Report and it stated that Cisco led the mobile industry

  • Mobile IP Infrastructure at 44.7% up 5% QoQ
  • Mobile IP Backbone at 69.6% up 2.6% QoQ
  • Mobile IP Backhaul at 45.7% up 9.9% QoQ
  • Packet Core (EPC + MPC) at 30.1%

Market Shares of Leading Vendors

With the recent announcements of merger mania in the Video and Mobile market, we expect the Mobile Video Growth continue to skyrocket. According to the just released Cisco VNI by 2019, more than 14 percent of monthly IP traffic will derive from cellular connections, and 53 percent of monthly IP traffic will come from Wi-Fi connections globally, making differentiated and monetizable mobile strategies more important for all service providers.

  • Wi-Fi and mobile connected devices will generate 67 percent of IP traffic by 2019 — Wi-Fi: 53 percent and cellular: 14 percent — compared with fixed traffic, which will account for 33 percent of overall traffic.
  • In 2014, fixed traffic accounted for 54 percent of IP traffic, while Wi-Fi accounted for 42 percent and cellular 4 percent.

The Internet of Everything (IoE) and M2M Growth – The IoE trend is showing tangible growth as M2M connections will more than triple over the next five years (growing to 10.5 billion by 2019). There will be significant IoE adoption across many business verticals (e.g., agriculture, healthcare, manufacturing, retail, and transportation) as well as connected home deployments (i.e., video security, smart meters, lighting/temperature control, etc.).

  • Connected Health consumer segment will represent the fastest M2M connections growth at 8.6-fold (54 percent CAGR) from 2014 to 2019;
  • Connected home segment will represent nearly half (48 percent) of M2M connections by 2019.
  • Annual global M2M IP traffic will grow 15-fold over this same period — from 308 petabytes in 2014 (0.5 percent of global IP traffic) to 4.6 exabytes by 2019 (2.7 percent of global IP traffic).

According to ACG Research the Mobile infrastructure will continue to be a highly dynamic market for the next several years as carriers are getting ready to offer new services and technologies such as VoWi-Fi, VoLTE, network function virtualization (NFV), small cells, Hotspot 2.0, millimeter wave backhaul.

“It has been an interesting quarter as the LTE key revenues shifted from North America and EMEA to Asia, which is becoming a very vibrant market across all the mobile technologies because of the large deployments and tremendous demand for mobile data,” states Elias Aravantinos, principal analyst, ACG.

Cisco’s continued success in the Mobile IP Infrastructure has been the result of our relentless focus on quality and execution of new features and close collaboration with customers and partners. Our ability to supply our customers with our IP Infrastructure Software on either a purpose-built Cisco platform, or allow for placement on a COTS hardware platform with the same quality has been key.

If you are heading to Cisco LIVE in San Diego during June 7 – 11, 2015 stop by and see the new services in the Service Provider Area where VoWi-Fi, Virtualization, Orchestration, and many other offerings will be on demo.

For the full report, please go to http://acgcc.com

For more information see our Cisco’s LTE Solutions.

I’ll be back real soon with more Cisco mobility updates from the analyst community and around the market as they happen. Stay tuned!

Meanwhile, we’d love to hear from you on what you’re looking forward to in the mobile market. Tweet us @CiscoSPMobility for questions or comments.



Jim O'Leary

Sr. Manager Mobile Solutions Marketing