Computer Networking Equipment Manufacturing

First Research, Inc.
January 26, 2015
10 Pages - SKU: FRRS5445366
Countries covered: United States

Computer Networking Equipment Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry primarily manufacture equipment used to transmit data across communications networks. Major companies include Cisco Systems, Dell, Hewlett-Packard, and Juniper Networks (all based in the US), as well as Alcatel-Lucent (France) and Huawei (China).

Production of computer networking equipment is concentrated in the Asia/Pacific region. China and Taiwan are among the largest exporters of networking equipment, including switches, routers, and network control equipment.

The US computer networking equipment manufacturing industry is part of the telecommunications equipment manufacturing industry.

COMPETITIVE LANDSCAPE

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 an opportunity for equipment vendors.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of networking equipment manufacturers are switches, routers, and network control equipment...



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