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Infonetics: Strong Sequential Growth for Carrier Routers and Switches in 2Q14 Masks Long-Term Trend

Market research firm Infonetics Research released vendor market share and preliminary analysis from its 2nd quarter 2014 (2Q14) Service Provider Routers and Switches report.

ANALYST NOTE

“As we’ve been cautioning, service providers of all sizes are being more guarded with their router spending habits as massive network transformation goals involving software-defined networking (SDN) and network functions virtualization (NFV) translate into specific activities and milestones. But this does not mean router and switch spending will tank or even take a sizeable downturn,” notes Infonetics Research analyst and co-founder Michael Howard.

Continues Howard: “Core router upgrades and replacements prompted by the move to 100GE and paired with many aging core routers drove the core router segment to 11% sequential growth in the second quarter of 2014, and with a lot of capacity ‘in the ground,’ we believe core routers will stay positive for the full year.”

MARKET HIGHLIGHTS

  • Worldwide service provider router and switch revenue, including IP edge and core routers and carrier Ethernet switches (CES), is up 20% in 2Q14 over 1Q14, to $3.9 billion
  • Though the quarter’s increase was solid, the long-term trend is reflected in the decline of 4% from the year-ago quarter (2Q13)
  • The IP edge router, IP core router, and CES segments all had double-digit revenue gains in 2Q14 from 1Q14
  • On a year-over-year basis, EMEA is the only region to achieve positive revenue growth (+3%) in the carrier router and switch market in 2Q14, while all regions—North America, EMEA, Asia Pacific, and CALA—are up quarter-over-quarter
  • The usual suspects continued to battle it out for the top 4 router and CES market share spots: Cisco stayed in the lead in 2Q14, with Alcatel-Lucent, Huawei, and Juniper (listed in alphabetical order) in a fight for the 2–4 positions
  • Infonetics expects global service provider router and switch revenue to grow at a 2.8% CAGR from 2013 to 2018

SDN WEBINAR

Join Michael Howard Sept. 4 at 11:00 AM EDT for Making Your Network Run Hotter With SDN to examine SDN architectural concepts that address challenges operators face today, including a look at actual operator SDN deployments. Attend live or access the replay at: http://w.on24.com/r.htm?e=828549&s=1&k=F60165254CA9F9103599DE4F83EDD3BC.

ROUTER & SWITCH REPORT SYNOPSIS

Infonetics’ quarterly service provider router and switch report provides worldwide, regional, China, and Japan market share, market size, forecasts through 2018, analysis, and trends for IP edge and core routers and carrier Ethernet switches. Vendors tracked: Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Coriant, Ericsson, Fujitsu, Hitachi, Huawei, Juniper, NEC, UTStarcom, ZTE, others. To buy the report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

TO INQUIRE ABOUT RESEARCH, CONTACT:

N. America (West), Asia Pacific: Larry Howard [email protected] +1-408-583-3335

N. A. (East, Midwest), L. America, EMEA: Scott Coyne [email protected] +1-408-583-3395

Greater China, SE Asia, India: 大中华区 Jeffrey Song [email protected] +86-21-3919-8505

Japan 日本 Takashi Kimura, TAK Analytics [email protected] +81-3-6408-5566

South Korea 대한민국 Doug Moon, MBAP [email protected] +82-2-3453-9400

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides here.

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