| SIC Codes: | 3661 |
| NAICS Codes: | 334210 |
Companies in this industry primarily manufacture equipment used to transmit data across communications networks. Major companies include the US-based Brocade Communications, Cisco Systems, Extreme Networks, and Juniper Networks, as well as Alcatel-Lucent (France), Fujitsu (Japan), NEC (Japan), and Siemens (Germany).
Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is highly concentrated: the 50 largest companies generate about 90 percent of revenue.
Major products of networking equipment manufacturers are switches, routers, and network control equipment interconnected using fiber optic and high-speed wiring. Major services of equipment suppliers include system and network design, software development, installation, monitoring, and maintenance. Other hardware and software products include intrusion prevention devices, remote termination equipment, firewalls, and network appliances.
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