SOURCE: Infonetics Research

October 11, 2007 15:59 ET

Strong quarter for service provider router and switch market, up 11%

CAMPBELL, CA--(Marketwire - October 11, 2007) - The worldwide service provider router and switch market jumped 11% in 2Q07 over 1Q07, hitting $2.7 billion, according to Infonetics Research's quarterly report, "Service Provider Routers and Switches: IP, Ethernet, and ATM."

Most major providers around the globe are involved in IP network transformation projects, aiming for a data services layer comprising IP, MPLS, and Ethernet, the report states. These data service layers will ride over a packet optical transport layer, which initially will be an Ethernet-WDM-SONET/SDH layer, and later a fused Ethernet-WDM layer. These trends will fuel growth in the service provider router and switch market.

"The service provider IP router market was buoyed in the second quarter by a remarkably strong Cisco router performance, as well as by strong results from the other 2 top router manufacturers, Juniper and Alcatel-Lucent. The market is being driven in general by increasing 10GE ports and IPTV rollouts," said Michael Howard, co-founder of Infonetics Research.

Other highlights from the report:


--  Worldwide service provider IP router unit shipments are up 21% and
    revenue is up 15% in 2Q07 from 1Q07
--  Worldwide carrier Ethernet switch (CES) revenue is up 8% in 2Q07;
    Cisco continues to lead by far in this segment, followed by Nokia Siemens
    and Huawei
--  Multiservice ATM switch revenue is down 3% in 2Q07; main applications
    are still DSL backhaul and mobile backhaul/aggregation
--  Service providers are forecast to spend more than $13 billion
    worldwide on service provider switches and IP core and edge routers in 2010
--  40% of all service provider router and switch revenue comes from North
    America, 32% from EMEA, 24% from Asia Pacific, and 4% from CALA in 2Q07
    

Infonetics' report provides market share, market size, and forecasts for IP core and edge routers, multiservice core and edge ATM switches, enterprise-class Ethernet switches, and carrier Ethernet switches and routers. The report also tracks IP edge routers and CES by application (multiservice edge, BRAS, Ethernet access transport, and Ethernet services edge).

The report tracks Alcatel-Lucent, Avici, Ciena, Cisco, Ericsson, Fujitsu, Huawei, Juniper, NEC, Nortel, Redback, Tellabs, ZTE, and others.

Download sample data at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, and service provider survey research and capex analysis.

Contact Information

  • Press Contact:
    Michael Howard
    Principal Analyst, Co-Founder
    Infonetics Research
    (408) 583-3351
    Email Contact