Analysts MZA report a strong start for Q1 2006 in the PBX and IP PBX markets – global volumes increased by 4% compared to the same period of 2005, as the number of extensions shipped worldwide registered at 15,851,000 extensions. Much of this increase continues to come from the above 100 extensions market, which increased by 7% compared to Q1 2005. The below 100 extensions market also performed well with growth of 2%.
Better news also for the North American market, which saw volumes rise by 12% compared to Q1 2005 after some disappointing results in previous quarters – most of the growth came from the indigenous manufacturers, Avaya and Cisco Systems. Avaya contributed to good rates of growth in the below 100 extensions segment, while Cisco Systems was responsible for a large part of the growth in the above 100 extensions marketplace.
Latin America also continues to do well with total volumes up by 6% when comparing with the same period of 2005. This is being fuelled almost entirely by the above 100 extensions market – Siemens, Alcatel and Cisco Systems all demonstrating a good performance in this segment. Of those players with a global presence, Siemens remains market leader in this region with a 17% market share, although it is important to not forget the very important local player Intelbras.
The Asia Pacific and Eastern European regions both registered an improvement in sales compared to the same period of last year. In the Asia Pacific region specifically, the NEC group (NEC/NEC Infrontia) and Samsung both recorded strong results in comparison to Q1 2005.
The Middle East and Africa region recorded a 2% decline compared to Q1 2005, which was largely due to an exceptional Q1 2005 for some manufacturers and is not indicative of a slow-down in this region. Overall, EMEA was up by 2% as the above 100 extensions market grew by 9%. Siemens captured 12% of the total EMEA market, with Alcatel second at 11%.
Competition for the global number one spot remains a very tightly fought contest, with Panasonic and Avaya both registering a 9% market share, while Siemens and Nortel are not far behind, each attaining 8% of the global market. Panasonic’s strong position is based on healthy sales in the below 100 extensions market, where the manufacturer continues to lead. In this market segment, the company is responsible for 12% of extension sales worldwide. Cisco Systems has clinched pole position in the above 100 extensions market, with a 13% market share.
The IP Extensions Market
The trend for IP growth in recent quarters has been for the below 100 extensions market to be registering a higher level of growth in percentage terms compared to the above 100 extensions market. Results for Q1 2006 suggest that this trend is set to continue during the course of this year. In all global regions, the above statement holds true, with the exception of the Middle East and Africa and Latin America regions, where growth in the above 100 extensions market is still outweighing the increases being seen below 100 extensions when comparing Q1 2006 volumes to the same quarter of the previous year.
Overall global volumes of IP extensions have increased by 37% in relation to Q1 2005 with approximately 2 million IP extensions being sold per quarter. The below 100 extensions market saw volumes increase by 51% compared to Q1 2005, while the above 100 extensions market rose by 32%. This means that in terms of volume, 35% of the overall increase in IP has come from the below 100 extensions market when comparing Q1 2006 to Q1 2005. Rewind the clocks one year and the below 100 extensions market only contributed 27% to the overall growth in IP (Q1 2005 versus Q1 2004). This trend is set to continue as many eyes are turning to the sub 100 market sector. Targeted campaigns in this area of the market, new product launches and a growing awareness amongst end-users about the technology available will drive this development as 2006 progresses. Cisco Systems leads in the total IP market, with a 36% market share.
The greatest increase in terms of percentage growth came from the Middle East and Africa, which was 66% up compared to the same period last year. In terms of volume, the North American market increased by the greatest number of IP extensions, which means that this market now represents 50% of IP extensions sold worldwide. Western Europe represents a 28% share of the global market.