Communications and technology services giant Ericsson has predicted that the total network equipment market will show a compound annual growth rate (CAGR) of 3% to 5% for the period 2012 to 2016.
Giving the update at its annual investor day, Ericsson said that it expects telecom services to show a CAGR of 5-7% and the market for support solutions to have a CAGR of 9-11%.
“Steady growth is expected across all areas with no major changes in figures for the main compound annual growth rates compared with last year,” the company predicted.
Outlining Ericsson’s main priorities for 2014, President and CEO Hans Vestberg added that the firm plans to monetise the investments the company has made in Europe, continue structural improvements to shorten order-to-cash cycle time, and evolve the infrastructure software model to fit an ICT environment.
“Looking at sales growth in a longer perspective, it is encouraging to see that we grew twice as fast as the market in 2010-2012, currency adjusted. This is proof that our strategy is effective and that we are delivering real value to our customers,” said Vestberg.
Beyond 2015, Ericsson said it will use the strength of its technology and services and its global scale to make investment decisions in targeted areas for growth – like IP, operations support systems (OSS), business support systems (BSS), TV and media, and modems.