Multi-Service Business Gateway Sales Shift to Emerging Markets

Multi-Service Business Gateway (MSBG) equipment manufacturers have shifted their focus from the US enterprise branch-office market to small businesses and selected vertical markets around the world, according to In-Stat ( Worldwide MSBG revenue is expected to grow slowly from US$729 million in 2009 to US$951 million in 2013.  MSBGs are defined as products purposely designed for small business and branch office applications that integrate multiple communication voice, data, and video functions into a single device.

Since 2007, the number of enterprise branch offices in the US has declined by nearly 6% to 1.48 million establishments.   Small business start-ups and the expansion of enterprise branch offices are expected to climb, but not until 2011.  Full economic recovery in the US will not be realized for an extended period of time.  Keith Nissen, In-Stat Principal Analyst, points out that MSBG equipment suppliers are increasingly focusing on international markets, especially India, China and Latin America that were less hard hit by the global downturn.

Recent research by In-Stat found the following:

  • MSBGs sales in developing countries are being justified based on the replacement of expensive TDM trunks with less expensive IP connections.

  • A market for MSBGs with WiMAX, or cellular mobile network connectivity is emerging in Europe and North Africa.  

  • In-Stat forecasts negligible small business and branch office growth in the US through 2013, but in other regions the number of these offices will be expanding by up to 4% annually.

This Market Alert is drawn from the In-Stat research,  Worldwide MSBG Market Update (#IN0904356CT), which covers the worldwide market for MSBGs.

It presents a detailed description of varying types of MSBGs, categorizing products into router-based, voice-based, and office-in-a-box MSBG devices. The research documents the impact of the global recession on the MSBG and related product segments. Current market trends and vendor strategies are discussed, along with a real-world assessment of the MSBG product segment, applications, and technology trends.

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This research is part of In-Stat's Business IP Communications Service. Growth in the business IP market has tremendous potential to disrupt the traditional telephone industry on multiple levels. Service providers, equipment manufacturers and systems integrators are increasingly offering different types of business VoIP solutions. IT managers and C-level executives recognize the cost savings and flexibility that VoIP solutions can bring to their businesses, but issues remain before comprehensive adoption takes place, such as security, integration and end-user transparency. Business adoption of IP communications will also be influenced by how companies integrate other communications functionalities, such as wireless connectivity via Wi-Fi and WiMAX, IM, and video applications.

Related In-Stat research:

US Business Spending by Size of Business and Vertical: Telecom—Wireline Voice Services

US Business Spending by Size of Business and Vertical: Telecom—Wireless Data, Handsets, and Voice

US Business VoIP Overview: Stick to Fundamentals

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