SOURCE: Infonetics Research

February 16, 2006 18:56 ET

Boom Year for Edge and Core Routers: Up 27% and 39% in '05

CAMPBELL, CA -- (MARKET WIRE) -- February 16, 2006 -- Between 2002 and 2005, worldwide service provider router and switch revenue grew 37%, from $5.3 billion to $7.2 billion, due to robust core and edge router sales, which jumped 77% in that time, from $2.96 billion to $5.25 billion, according to Infonetics Research's Service Provider Routers and Switches report.

Conversely, multiservice switch revenue dropped 5% during that same period, from $2.33 billion to $1.98 billion, after a high of nearly $5 billion in 2000.

"The decline of multiservice switches and the rise of core and edge routers are a sign of the times. Service providers are clearly moving toward next gen IP and Ethernet networks, while decreasing investments in their ATM networks. Service provider routers are performing remarkably well, posting a 31% increase between 2004 and 2005," said Michael Howard, principal analyst at Infonetics.

Market Highlights

--  In 2000, routers made up 47% of the router/switch revenue share,
    switches made up 53%; in 2005, routers are up to 73% and switches down to
    27% of the total
--  Cisco posted a strong year in the service provider router market,
    increasing revenue more than $300 million to $2.8 billion in 2005, though
    their share decreased from 61% to 53% as Juniper, posting a $390 million
    gain, increased their share to 26%
--  Huawei and Alcatel each improved their overall carrier router revenue
    share, taking third and fourth positions, respectively, in the worldwide
    market
--  In the multiservice switch market, Nortel continues its lead with 38%
    revenue share (up from 30% in 2004), followed by Alcatel and Lucent
    
Infonetics releases its 2009 service provider router and switch forecasts February 17. The report tracks IP core and edge routers, and multiservice core and edge switches. Forecasts and market share are updated quarterly and cover all regions.

The report provides analysis and rankings for Alcatel, Avici, Ciena, Cisco, Fujitsu, Huawei, Juniper, Lucent, Marconi, NEC, Nortel, Redback, Riverstone, Tellabs, and others.

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

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

Contact Information

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