Research of global and Russian markets of DPI solutions

December 2018

Analytical Report (full version)

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Analytical Report (full version)

Research of global and Russian markets of DPI solutions
Research of global and Russian markets of DPI solutions
December 2018

Research of global and Russian markets of DPI solutions

December 2018

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The opportunities for revenue growth of mobile and fixed Internet providers are becoming increasingly limited. Most of the new areas of revenue creation are related to the ability to operate with "big data", which can then be monetized through various services and products. Business-relevant "big data" is now more contained in web traffic rather than in voice and signal traffic, as before. This gives a number of major technical issues to the operator, which affect the operator's ability to use both the metadata contained in the web traffic and the content directly used by the user of the network. To solve this specific problem, operators deploy Deep Packet Inspection (DPI) solutions in their networks. 


The subject of a new study by J'son & Partners Consulting is DPI technological solutions with an emphasis on their use in the perimeter of large telecom operators. The purpose of the study is to identify trends in the development of the market of DPI solutions and assess the possibility of using these solutions to perform business tasks of medium and large telecom companies. The study may be interesting to companies from other industries, including banking and financial institutions, as well as government agencies and organizations.


Based on the consolidated information from the research of this market and a survey of industry experts, the paper provides recommendations on the choice of DPI solutions depending on the size of the operator's subscriber base. The study also describes in detail the methods of DPI monetization, in the framework of the study of this possibility, a classification of possible ways to monetize DPI into 4 large segments is formed and the algorithm for selecting DPI solutions depending on which of the methods of monetization are more priority for the operator is described. The methodology of DPI selection, which takes into account both groups of functional requirements to the platform and technical characteristics of DPI solutions depending on the size of the network, is also formulated.


The ecosystem of DPI solutions both in Russia and in other countries is considered in detail, the key suppliers of such solutions and their market shares in the world market are identified. The Russian DPI market and its key players – Russian and foreign equipment manufacturers and integrators - are described. The study also provides an exhaustive list of typical use cases of DPI, many of them are specific examples of implementation in Russia or abroad. Some cases contain specific financial parameters of monetization, on the basis of which, in particular, assessments of the possibility of monetization and development of the DPI market are made. Special attention is paid to the examples of deployment of DPI solutions in the perimeter of domestic and foreign companies.


Based on the analysis of all typical scenarios of use, J'son & Partners Consulting estimates the volume of the market for monetization of DPI solutions in value terms of 14 billion rubles with a forecast of growth to almost 60 billion rubles by 2022. The scenario used for forecasting includes the availability of DPI platforms for all key operators, as well as the proposed legal restrictions on the use of "big data".


The growing influence of DPI is projected in almost all areas of monetization on the basis of data. This will allow to monetize both the existing standard scenarios of use, which will be significantly enriched due to the new data flow, and to create new directions of monetization associated with modern cyber threats. It is expected that the proportion of monetizing through DPI trends in the income of operators of Russia will increase to 3.33% of revenues in 2022.


A number of research companies estimate that the global DPI market may show high growth rates; it is expected to reach $18.60 billion by 2021 with CAGR at 21.6%. The volume of the total Russian DPI market, which includes both the cost of purchasing equipment and operating costs and the cost of services of third-party contractors in monetary terms, will be between 1.8 and 4 billion rubles per year. Due to the requirements of the Yarovaya Law and the requirements from regulatory bodies for the development of filtration systems, high growth rates of the Russian market of DPI solutions are expected. It is predicted that the market for the domestic development of operator DPI solutions will grow to 5.5 billion rubles by the end of 2022 with 24% CAGR.


Comments of the Russian market participants:



Igor Gorkov, CEO of Nexign

What are the prospects of the Russian DPI market?


Digital transformation challenges the telecommunications market by shifting the focus of telecom operators from classic services to digital ones. A key element of the transformation process will be a new generation of BSS systems that significantly expand the opportunities for the formation of proposals relevant to a particular client. Operators will be able to achieve the maximum effect in the direction of network infrastructure monetization with the help of traffic management systems.


The global market of deep traffic analysis systems (PCEF/DPI) is growing every year, and Russia is no exception. PCEF/DPI systems will be increasingly in demand among Telecom operators, due to the technology's ability to accurately detect various services in the general data flow and, depending on the subscription, allow or, conversely, prohibit access to content, as well as provide free access to operator resources.


The growth of the market will be due to the replacement of old DPI systems with modern ones that support work in the virtual infrastructure, monitor statistics for each subscriber session, enrich big data systems with these statistics and perform tasks to block prohibited content.


What are the main drivers and constraints of market growth?


Speaking about the main growth factors of the DPI market, we can distinguish:

  • increase in total traffic volume for each subscriber in data networks;
  • the desire of operators to obtain additional sources of income through the introduction of new services;
  • the need to replace outdated DPI systems that do not meet modern requirements;
  • new requirements for operators from state bodies related to anti-terrorist amendments and restriction of access to prohibited resources.

Factors limiting the growth of the DPI market are decline in the operators’ incomes from traditional communication services (voice and SMS). It is worth noting that not all market players are fully prepared for the challenges of the digital economy and, as a result, new sources of monetization will be introduced more slowly than we would like. Another possible scenario of limiting the market growth rate is the withdrawal of heavy traffic received from partner services from DPI platforms. Without exposing the traffic of partner applications and content providers to deep analysis, it is possible to significantly reduce the rate of expansion of the current DPI platforms.



Sergey Nikulin, CEO of RDP.RU

What are the barriers to the growth of DPI solutions in Russia today?


In the mass consciousness amongst telecom market players, including medium and large Internet providers, there is a stable stereotype that DPI solutions are expensive and difficult to integrate into their own infrastructure. This opinion started forming long ago because of the dollar pricing policy of international vendors. Today, there are DPI-solutions fully able to compete with international brands, but at a significantly lower price.


What growth drivers do you see for DPI solutions in Russia?


The growth in the number of new subscribers from Internet providers has significantly decreased and the market has approached the point of saturation. Many players are seriously considering, firstly: options for sources of additional income, and secondly, ways to retain customers. Using DPI-solutions and in particular QoE (Quality of Experience) it is possible to increase additional income by analyzing subscriber traffic, subscriber preferences and additional sales of additional services to subscribers.


In addition, the participants are beginning to understand that DPI solutions are a powerful tool for monitoring and managing the network provider/operator. For example, in the case of a break in optics or any other failure in the network, you can prioritize important traffic, separating, for example, torrent traffic and similar services from more important traffic, thereby minimizing the negative effect for a larger number of subscribers. And there are many such examples.



This information note was prepared by the J'son & Partners Consulting. We work hard to provide factual and prognostic data that fully reflect the situation and available at the time of release. J'son & Partners Consulting reserves the right to revise the data after publication of new official information by individual players. 


Copyright © 2018, J'son & Partners Consulting. The media can use the text, graphics and data contained in this market review only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal


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Detailed results of the study are presented in the full version of the report:


Research of global and Russian markets of DPI solutions



1. Brief description of DPI technology

2. DPI ecosystem       

2.1. Global and Russian vendors

2.2. Russian DPI solutions        

2.3. System integrators in Russia        

2.4. Comparison of DPI platforms       

3. The DPI market size in the world and in Russia   

3.1. Evaluation of the global market of DPI solutions

3.2. Evaluation of the Russian market of DPI solutions        

4. DPI solutions in the perimeter of Russian telecom companies

5. Use cases for DPI technology monetization       

6. Analysis of use cases of DPI technology in Russia and abroad

7. Analysis of target markets with the possibility of monetization of DPI technology    

8. Current challenges for the DPI sector development


List of Pictures

Picture 1 DPI functional domain 

Picture 2 How important is DPI today?   

Picture 3 Top 3 types of solution vendors, from which operators will buy analytical tools   

Picture 4 Distribution of various types of DPI products in the EMEA region, 2012 - 2020 (USD)      

Picture 5 DPI ecosystem           

Picture 6 Revenue ratio of the two largest suppliers of DPI systems, 2010-2015 (%)        

Picture 7 Structure of the Russian market of DPI solutions by income, 2018         

Picture 8 Volume of the global DPI market ($ million)     

Picture 9 DPI market revenues by sectors of the telecom market ($ million)        

Picture 10 Assessment of the global DPI market by MarketsAndMarkets  

Picture 11 Assessment of the Russian market of DPI. Distribution of costs for DPI solutions, 2018 

Picture 12 Assessment of the Russian market of DPI in terms of demand, 2018    

Picture 13 Dynamics of the Russian DPI market in million rubles (2018-2022).     

Picture 14 Parental control service based on Cisco and CAIR product       

Picture 15 DPI use categories    

Picture 16 DPI use categories    

Picture 17 Bandwidth allocation 

Picture 18 User profile traffic     

Picture 19 Protection while using DPI and CAPTCHA       

Picture 20 Scheme of operation of X-UIDH         

Picture 21 Monetized directions and volume of monetization market in the presence of full-featured DPI solutions in the operator's network       

Picture 22 Dynamics of monetized DPI directions

Picture 23 Visibility funnel. Operators see much less data about users than commonly believed     

Picture 24 Encryption from fixed providers in North America, 2015          

Picture 25 What information users do not will to share with companies    

Picture 26 Industries considered by respondents to be most vulnerable to data leakage and cyber attacks


List of Tables

Table 1 Participants in comparison in the initial segment 

Table 2 Comparative characteristics of vendor solutions, 2018    

Table 3 Comparison of Russian vendors by some parameters and system functionality     

Table 4 Ranking of vendors in the areas of monetization of DPI solutions for telecom operators, 2018