yankeegroup.com
Executive Summary of Integrated Access Devices: One Pipe, Many Services
The market for integrated access devices (IAD) as we know them in their multi-T1 or high-end form is slowing. The Yankee Group expects that the worldwide market for the remainder of 1999 will be stalled at its 1998 size of $486 million and will slowly make its way up to $725 million by 2002, increasing at a compound annual growth rate (CAGR) of 11% (see Exhibit 1). By that time, the IAD vendors will have had a chance to add GR303, ATM switching, IP routing, and IVPN functionality to the traditional TDM-based devices to help stimulate the market for high-end devices.
We have seen the emergence of a new market for what the Yankee Group terms low-end IADs: single or dual T1 IADs. We saw revenue from new products such as Premisys SlimLine and StreamLine products, VINA Technologies' T1 Integrator, and Telco Systems' Edgelink 300. Existing T1-based IADs, such as Carrier Access Corp.'s (CAC's) Access Bank II, Telco Systems' Access 45, and Adtran's TSU600, also showed considerable revenue last year.
In 1998, the low-end IAD market was still relatively young and small at $42 million; but as the equipment vendors enhance the products to support xDSL ports, Voice-over-DSL, ATM, and routing abilities, we expect to see considerable growth during the next four years. The Yankee Group forecasts that the worldwide low-end IAD market will grow at a CAGR of 42%, climbing up to $171 million by 2002. |
