SOURCE: Infonetics Research

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June 10, 2015 18:41 ET

IHS: Virtual Routers on Track to Grow 125% in the Next Year

CAMPBELL, CA--(Marketwired - June 10, 2015) - Architectural changes based on virtualization and packet-optical technologies will hold the compound annual growth rate (CAGR) of the worldwide service provider router and switch market to 2.1 percent over the 5 years from 2014 to 2019, according to the latest IHS InfoneticsService Provider Routers and Switches report from IHS (NYSE: IHS).

"Carriers' plans to move more services off edge routers and onto NFV servers and to shift more metro and transport functions to packet-optical transport systems (P-OTS) does not mean that router and switch spending will take a sizable downturn over the next five years. Rather, revenue will grow slowly," said Michael Howard, senior research director for carrier networks at IHS.


Virtual routers, or vRouters, made their debut in real-world use cases only in the last few years (for example, Brocade's Vyatta vRouter).

The global vRouter market is in early stages and is forecast by IHS to grow 125% from 2015 to 2016, led by Asia Pacific.

The global service provider router and switch market totaled $3.3 billion in 1Q15, down 13 percent from the previous quarter, but up 3 percent from a year ago.

Looking at router and carrier Ethernet switch (CES) revenue by geography in 1Q15, North America, EMEA and Latin America were up year-over-year, while Asia Pacific was down.

On a 4-quarter rolling average, Alcatel-Lucent, Cisco, Huawei and Juniper (in alphabetical order) were tops in router and CES vendor market share.

Clients are invited to log in to view Michael Howard's router and switch market update, live June 12 at 12:00 Eastern or on-demand:

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, Huawei, Juniper, NEC, UTStarcom, ZTE and others. To purchase the report, please visit:

Survey: 35 Percent of Operators Surveyed Will Deploy NFV This Year:

Telecom Carrier Spending Entering New Era Marked by Diverse Regional Trends:

Ethernet Access Device (EAD) Market to Resume Growth in 2015:

Carrier Router and Switch Market Up in China, Down in North America in 2014:

Download the IHS Infonetics 2015 service brochure or log in:
- 1G/10G/40G/100G Networking Ports Forecast (Apr. 27)
- Carrier Ethernet Equipment Forecast (May 4)
- NFV Strategies: Global Service Provider Survey (May 19)
- SDN Vendor Leadership: Global Service Provider Survey (June)
- Service Provider Router & Switch Vendor Scorecard (June 11)
- Global Telecom & Datacom Market Trends & Drivers (June 22)
- Router & Switch Vendor Leadership: Global Service Provider Survey (June 30)
- NFV Hardware & Software Forecast (July 9)
- Carrier SDN Hardware & Software Forecast (Aug. 6)
- Routing, NFV & Packet-Optical Strategies: Global Service Provider Survey (Aug. 10)

- Adopting Software-Defined WAN for Agility and Cost Savings (June 16: Register)
- Service Provider NFV: The Good, the Bad, and the Ugly (June 23: Register)
- Optical Transport for Data Centers and Content Providers (June 30: Register)
- Evolving Network Architectures: Cloud, SDN, NFV and Packet-Optical (Watch now)
- The Fast Way to Launch New Broadband Services: Virtual Networking (Watch now)
- SDN and NFV: Lessons Learned Moving from Lab to Commercial Service (Sponsor)

- North America (West): Larry Howard +1 408-583-3335
- North America: Scott Coyne +1 408-583-3395
- Greater China: Jeffrey Song +86 21-3919-8505
- Japan: Takashi Kimura, TAK +81 3-6408-5566

About IHS (
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today's business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.

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Contact Information

  • News Media Contact:
    Michael Howard
    Senior Research Director, Carrier Networks
    +1 408-583-3351
    Email contact
    Twitter: @MichaelVHoward