SOURCE: Infonetics Research

Infonetics Research - new logo

December 01, 2014 17:19 ET

Infonetics: Carrier Ethernet switches up 32%, routers down 10% in 3Q14 as operators plan for SDN

CAMPBELL, CA--(Marketwired - December 01, 2014) - Market research firm Infonetics Research released vendor market share and analysis from its 3rd quarter 2014 (3Q14) Service Provider Routers and Switches report.

ANALYST NOTE
"The 'SDN hesitation' we first identified four quarters ago remains in effect, slowing router spending in the third quarter of 2014 as carriers remain cautious about investing in equipment and software that might need to be replaced in the future," says Infonetics Research analyst and co-founder Michael Howard.

"Meanwhile carrier Ethernet switches (CES) had an unprecedented quarter, with global revenue up 32% from the previous quarter and up 14% from a year ago, driven by ZTE in China and Cisco in North America," continues Howard. "Fundamental changes are on the horizon as the market transitions from hardware-driven to software-driven, but no doubt routers must be fitted with higher-capacity blades to accommodate growing traffic, and there is intensifying focus on content delivery networks (CDNs) and smart traffic management across routes to make routers and optical gear cooperate more closely."

3Q14 CARRIER ROUTER AND SWITCH MARKET HIGHLIGHTS

  • Combined, service provider routers and switches -- including IP edge and core routers and carrier Ethernet switches -- totaled $3.7 billion worldwide in 3Q14, down 3% from the previous quarter
  • All regions except CALA (Caribbean and Latin America) were down sequentially in 3Q14
  • However, the market is up 3% from the year-ago 3rd quarter, reflecting the long-term slow growth trend Infonetics has been tracking
  • Infonetics expects the global carrier router and switch market to slowly grow to $17 billion by 2018, a five-year (2013-2018) compound annual growth rate of just over 3%
  • Looking at rolling 4-quarter router market share, Huawei increased its share the most of any vendor (+4.6 points) from 3Q12 to 3Q14, as edge and core router revenue stayed relatively flat

ANALYST CONFERENCE CALL FOR CLIENTS
Infonetics clients are invited to join Michael Howard live or on-demand Dec. 16 at noon EST for a routing and switching market outlook. For password: www.infonetics.com/cgp/login.asp?id=865.

ROUTER/SWITCH REPORT SYNOPSIS
Infonetics' quarterly service provider router and switch report provides worldwide, regional, China, and Japan market share, market size, forecasts through 2018, analysis, and trends for IP edge and core routers and carrier Ethernet switches. Vendors tracked: Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Coriant, Ericsson, Fujitsu, Hitachi, Huawei, Juniper, NEC, UTStarcom, ZTE, others. To buy the report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

RECENT AND UPCOMING RESEARCH
Download Infonetics' 2014 market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at www.infonetics.com/login.

INFONETICS WEBINARS
Visit www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on-demand, or learn about sponsoring a webinar.

  • NFV with SDN Service Chaining for Quickest New Revenue (Dec. 11: Attend)
  • SDN and NFV Roundup of Trials and Deployments (View on-demand)
  • Making Your Network Run Hotter With SDN (View on-demand)
  • Choosing the Right SDN-NFV Orchestration Platform (Feb. 12: Learn more)

INFONETICS IS HIRING
Infonetics Research is hiring analysts. See job openings at www.infonetics.com/jobopp.asp.

TO INQUIRE ABOUT RESEARCH, CONTACT:
N. America (West), Asia Pacific:
Larry Howard larry@infonetics.com +1 408-583-3335
N. A. (East, Midwest), L. America, EMEA: Scott Coyne scott@infonetics.com +1 408-583-3395
Greater China, SE Asia, India: 大中华区 Jeffrey Song jeffrey@infonetics.com +86 21-3919-8505
Japan 日本 Takashi Kimura, TAK Analytics takashi.kimura@takanalytics.com +81 3-6408-5566
South Korea 대한민국 Doug Moon, MBAP dougm@mbap.co.kr +82 2-3453-9400

ABOUT INFONETICS
Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' About Us slides here.

Image Available: http://www.marketwire.com/library/MwGo/2014/12/1/11G027522/Images/2014-Infonetics-3Q14-SP-Routers-Switches-Mkt-Fcst--307556131939.jpg

Contact Information

  • PRESS CONTACT:
    Michael Howard
    Co-founder and Principal Analyst, Carrier Networks
    Infonetics Research
    Email contact
    +1-408-583-3351
    Twitter: @MichaelVHoward