|Last Quarterly Update:||11/18/2013|
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Companies in this industry primarily manufacture equipment used to transmit data across communications networks. Major companies include US-based Brocade Communications, Cisco Systems, Hewlett-Packard, Juniper Networks, and NETGEAR, as well as Alcatel-Lucent (France), D-Link (Taiwan), Fujitsu and NEC (Japan), and Huawei (China).
The global computer networking equipment industry generates more than $100 billion in revenue a year. While production is concentrated in the Asia/Pacific region, emerging markets such as Africa, Latin America, and Eastern Europe offer growth potential for manufacturers.
The US computer networking equipment manufacturing industry is part of the telecommunications equipment manufacturing industry.
Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The US telecommunications equipment manufacturing industry is highly concentrated: the 50 largest companies generate about 90 percent of revenue.
The US telecommunications industry is in transition: the current telephone backbone network is being converted from circuit-switched to multimedia networks combining voice, data, and video over high-speed links. This transition will require replacing a substantial portion of equipment, presenting ...
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