EL SEGUNDO, CA - Voice over Internet Protocol has become a key growth driver for telecom equipment suppliers, according to iSuppli Corp. Worldwide VoIP equipment revenue will rise to $11.9 billion in 2010, a compound annual growth rate of 24.7% from $3.95 billion in 2005.
 
At the end of 2005, private branch exchanges accounted for 46% of VoIP equipment revenue, while infrastructure and residential gear each took a 27% share, says iSuppli. According to Steve Rago, principal analyst for networking and optical service, PBX/enterprise equipment sales will rise to $5.6 billion in 2010, a CAGR of 25.8%.

VoIP equipment revenue growth for enterprise/PBX is said to be driven by these factors:

· The need for service providers and enterprises to control capital expenditures and operating expenses.
· The introduction of new PBX features for enterprise equipment.
· The drive to networks completely based on IP.
 
The number of residential VoIP subscribers worldwide is expected to increase to 151.2 million by 2010, a CAGR of 57.1% from 15.8 million in 2005, iSuppli adds.

Equipment makers and telecom service providers are targeting the residential VoIP market; residential VoIP product revenues are projected to grow at a CAGR of 31.1%, rising to more than $4.1 billion in 2010, up from $1.1 billion in 2005.