Enterprise media gateways are used as an interface between traditional devices running public switched telephone network (PSTN) protocols and the devices running Internet Protocol (IP) suite. Small IP Private Branch Exchange (PBX) systems for small and medium-sized enterprises have up to dozens of port extensions. In addition, media gateways are also used for networking between large media manager, media server or communication manager in large-sized enterprises. The media gateways can also be used for translating between audio, video, and other data formats and may be used for signaling conversions. The global enterprise media gateway market was valued at USD 1.89 billion in 2013 and is expected to grow at a CAGR of 3.1% during the forecast period from 2014 to 2020.
Based on the size of an enterprise, enterprise media gateway market is segmented into small-sized enterprises (1-100 employees), medium-sized enterprises (100-500 employees), and large-sized enterprises (over 500 employees). As the small businesses grow, it becomes imperative to provide centrally managed communication systems using various advanced IP solutions. End-users of enterprise media gateway solutions gain benefits such as high reliability, interoperability between third party hardware and software, centralized call control, and centralized management. Small-sized and medium-sized enterprises are expected to grow in the coming years creating the demand for IP based telecommunications solutions.
Enterprise media gateways cater to various industries such as telecom and IT, healthcare, government sector, media and entertainment, banking and insurance, and others (defense and hospitality). The use of enterprise media gateways is surging in telecom and IT sector along with banking, financial services and institutions (BFSI). The demand for mobility devices is increasing leading to the increasing adoption of portable devices such as smartphones and tablets. As a result, the demand for IP based communication services is increasing, thus leading to the growth of enterprise media gateway market. Government bodies are adopting advanced telecommunication technologies which are driving the enterprise media gateway market in the government sector.
In 2013, North America was the largest market for enterprise media gateways in terms of revenue generation due to the significant adoption of IP based telecommunication solutions across industries such as telecom and IT, government, and banking and insurance. This adoption is attributed mainly to the high internet penetration in the North American region. However, Asia Pacific is expected to be the fastest growing region owing to the rising number of small and medium-sized enterprises along with high growth of banking and insurance sector in the Asia Pacific region. Furthermore, the growth in Asia Pacific region is attributed to the establishment of high speed communication networks and rapid development of network infrastructure. Enterprise media gateway market has potential opportunities in emerging countries of Africa, Latin America, and the Middle East. This is due to the affordable prices of availing Internet services for small, medium, and large-sized enterprises in these geographies.
The global enterprise media gateway market is led by players such as AudioCodes Ltd., Avaya Inc., Cisco Systems Inc., GENBAND, Alcatel-Lucent SA, Grandstream Networks, Inc., ADTRAN, Inc., Siemens AG, Huawei Technologies Co. Ltd., and ZTE Corporation among others.