Market Insight

REPORT HIGHLIGHTS - Enterprise Router Market Returns to Year-over-Year Growth

March 17, 2016

Matthias Machowinski Matthias Machowinski Directing Analyst, Enterprise Networks and Video
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Healthy enterprise demand and rising traffic on wide area networks (WANs) helped the global enterprise router market return to growth in 2015, lifting it 3 percent from the prior year, according to the Enterprise Routers Market Tracker from IHS Inc. (NYSE: IHS).

“Overall, 2015 was a decent year for the enterprise routing market, with growth driven by economic expansion and rising traffic on wide area networks,” said Matthias Machowinski, research director for enterprise networks and video at IHS.

“We expect further gains in 2016, but there are risk factors, including the potential for a slowing economy in the US and prolonged hesitation by service providers as they evaluate the impact of software-defined networking (SDN) and network functions virtualization (NFV) on their network architectures,” Machowinski said.  


  • For the full-year 2015, worldwide enterprise router revenue was $3.7 billion
  • The upswing in the enterprise router market was somewhat offset by pockets of weakness in the service provider vertical, as well as in China and Japan
  • Low-end routers, whose revenue grew 28 percent in 2015, continue to take share at the expense of the mid-range and branch office segments
  • Cisco successfully defended its dominant position in the enterprise router market in 2015 and was able to take back share it had lost in previous years thanks to robust enterprise demand and the launch of its latest generation of routers
  • Huawei surged into the #2 spot for enterprise routers due to its push into the enterprise market, competitive displacement in China and expansion into EMEA (Europe, Middle East, Africa)


The quarterly enterprise routers report tracks revenue and ports for high-end, mid-range, branch office, low-end/SOHO routers and vRouters (virtual routers), providing worldwide and regional market size, vendor market share, forecasts through 2020, analysis and trends. Vendors tracked include Adtran, Alcatel-Lucent, Brocade, Cisco, HPE, Huawei, Juniper, NEC, OneAccess, Yamaha, ZTE, others.

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