Infonetics: Deep-Packet Inspection Market to Reach $2 Billion in 2016

Growing demand by service providers of all stripes is driving growth in the Deep-Packet Inspection (DPI) market, a market in which revenue will grow to $2 billion in 2016, according to Infonetics Research's "Service Provider Deep Packet Inspection Products" report.

The insatiable demand for bandwidth by both consumer and business customers requires service providers to better understand and manage the IP traffic traversing their network. Once the domain of wireline networks, the move to 4G technology has wireless carriers driving much of the DPI demand now.

"Though fixed-line operators continue to invest in deep packet inspection solutions for traffic management and to manage the impact of over-the-top (OTT) content on their networks, wireless operators are looking to DPI for more granular traffic management, including prioritization and strategic offload, and are starting to deploy DPI hand-in-hand with their LTE network upgrades," stated Shira Levine, directing analyst for next gen OSS and policy at Infonetics Research.

Report highlights include:

  • Service provider deep packet inspection (DPI) product revenue grew 29% to over $470 million worldwide in 2011
  • Infonetics Research forecasts the service provider DPI market to grow to $2.0 billion in 2016, with the bulk of the growth coming from the mobile space
  • Huawei narrowly pulled ahead of Sandvine to take the lead in global service provider DPI revenue share in 2011
  • DPI is increasingly being incorporated into larger solutions, such as video optimization and mobile offload, creating opportunities for suppliers that offer DPI technology on an OEM basis
  • Operators are evaluating alternatives to throttling or blocking high-bandwidth video content, including using DPI for media caching, to prioritize select video content to support guaranteed QoS and as part of a content delivery network strategy
  • Infonetics expects strong growth for service provider DPI products in emerging markets in Asia Pacific, the Middle East, and Africa as operators look to address network congestion caused by rapid subscriber growth, comply with regulatory requirements, and support cybersecurity initiatives
Written by Kevin Kutcher at 14:00
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