Press Release

Infonetics: Enterprise Router Market’s Strong Q4 in China Not Enough to Offset Global Declines

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Cambridge, MASSACHUSETTS> (April 1, 2015)—Technology market research firm Infonetics Research, now part of IHS, Inc. (NYSE: IHS), today reported that global sales of enterprise routers, which provide connectivity between networks and to the internet, are down 3 percent for the full-year 2014, following a 6 percent increase the year prior.

Infonetics’ fourth quarter 2014 (4Q14) and year-end Enterprise Routers market share, size and forecasts report tracks high-end, mid-range, branch office and low-end/SOHO router revenue and ports.

“After a strong 2013, enterprise router sales fell negative in 2014, dragged by a challenging capex environment at service providers in North America and Europe,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, now part of IHS.

“High-end routers continue to do well, driven by new data center deployments and large enterprise headquarters upgrades, but the mid-range and branch office segments both declined due to a focus on cost reduction and shifting preferences to low-end routers,” Machowinski said.

ENTERPRISE ROUTER MARKET HIGHLIGHTS

  • Globally, enterprise router revenue totaled $974 million in 4Q14, a 4 percent increase sequentially, but a 3 percent decline from the year-ago 4th quarter
    • In 4Q14, revenue growth was undermined by average selling price (ASP) declines in the branch and mid-range categories
  • Asia Pacific was once again the top-performing region for enterprise routers, with China in typical fashion ending the year with a bang and Japan returning to growth
  • The top enterprise router vendors, based on global 2014 revenue, are Cisco in first place, HP in second and Brocade in third
  • ZTE’s enterprise router sales more than tripled in 2014 as preferences in China shifted to local vendors; Huawei also ended the year on a high note thanks to end-of-year buying in China
  • Long term, enterprise routers could face downward pressure from their software-only cousins, virtual routers, which will be attractive to service providers as a means to reduce CPE costs and deploy new services quickly

ENTERPRISE ROUTER REPORT SYNOPSIS

Infonetics’ quarterly enterprise router report provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends for high-end, mid-range, branch office and low-end/SOHO router revenue and ports. Vendors tracked: Adtran, Alcatel-Lucent, Brocade, Cisco, HP, Huawei, Juniper, NEC, OneAccess, Yamaha, ZTE, others. To purchase the report, contact www.infonetics.com/contact.asp.

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