Market Insight

REPORT HIGHLIGHTS - Core Routers Lone Bright Spot in 3Q Carrier Routing and Switching Market

December 01, 2015

Michael Howard Michael Howard Technology Fellow and Advisor, Carrier Networks, IHS Markit

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Globally, service provider router and switch revenue totaled $3.5 billion in the third quarter of 2015 (3Q15), a 12 percent falloff from the prior quarter, and a 7 percent decline year-over-year. Edge routers, core routers and carrier Ethernet switches (CESs) were all in negative territory quarter-over-quarter as carriers continue to be cautious with spending in anticipation of software-defined networking (SDN) and network functions virtualization (NFV).

MORE Q3 ROUTER AND SWITCH MARKET HIGHLIGHTS

  • Core routers were the only product segment to notch positive revenue growth on a year-over-year basis in 3Q15 (+10 percent)
  • Showing further signs of a strengthening recovery, EMEA’s carrier routing and switching revenue was up 3 percent sequentially in 3Q15, and up 9 percent from the year-ago quarter (3Q14)
  • Meanwhile, North America, Asia Pacific and CALA were down both quarter-over-quarter and year-over-year
  • Looking at router-only market share, Cisco is in the lead, with a fight for the #2, #3 and #4 positions stirring between Juniper, Huawei and Alcatel-Lucent

ANALYST CONFERENCE CALL

Clients: Log in to view Michael Howard’s router and switch market recap and outlook, live Dec. 10 at 11:00 AM ET or on-demand: www.infonetics.com/cgp/login.asp?id=1086.

ROUTER AND SWITCH REPORT SYNOPSIS

The quarterly IHS Infonetics Service Provider Routers and Switches market research report tracks the foundational network equipment—IP edge and core routers, vRouters and carrier Ethernet switches (CESs)—that enables voice, video and data communications. The research service provides worldwide, regional, China and Japan market share, market size, forecasts through 2019, analysis and trends. Vendors tracked include Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Coriant, Ericsson, Fujitsu, Hitachi Metals, Huawei, Juniper, NEC, UTStarcom, ZTE, others. This report is part of the IHS Service Provider Routing and Switching Intelligence Service. To inquire about research subscriptions, please visit www.infonetics.com/contact.asp.

Geography
Global
Research by Market
Enterprise & IT Mobile & Telecom
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