In 1Q17, the total (SP + Enterprise) SBC market fell 11% sequentially but was up 13% Y/Y to reach $285 M. During the quarter the enterprise (E- SBC) grew 21% Y/Y to $131 M, accounting for 46% of the total market, while the service provider (SP- SBC) segment grew 6% over the same timeframe. The Y/Y growth in the SP-SBC segment was due to strength in the wireless/VoLTE segment which grew 13% Y/Y to $72 M.

The total market grew 15% in 2016 to over $1.2 B as both the E-SBC and SP-SBC markets continue to benefit from continued migration to IP services. We forecast that these trends will continue in 2017 and that the E-SBC and SP-SBC markets will grow by 12% and 25%, respectively, and that the total market will reach $1.34 B. The SP segments will be driven by an 12% increase in the wireline market and a 25% increase in the wireless/VoLTE category.