SOURCE: Infonetics Research

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April 13, 2015 15:35 ET

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

CAMPBELL, CA--(Marketwired - April 13, 2015) - Technology market research firm Infonetics Research, now part of IHS Inc. (NYSE: IHS), reported that service provider router and switch revenue totaled $14.6 billion worldwide in 2014, essentially flat over 2013 as SDN (software-defined networking) hesitation slowed spending.

"We've been talking about this for the past year and it's still true: the enormity of the coming SDN-NFV transformation is making carriers more cautious with their spending," said Michael Howard, senior research director for carrier networks at Infonetics Research, now part of IHS. "But this does not mean that router and switch spending will take a sizeable downturn. Rather, we look for the market to slowly climb to $17 billion in 2019, a five-year compound annual growth rate (CAGR) of just over 3 percent -- unchanged from our previous forecasts."

Infonetics' fourth quarter 2014 (4Q14) and year-end Service Provider Routers and Switches report contains vendor market share, size and forecasts for the foundational network equipment -- IP edge and core routers, vRouters and carrier Ethernet switches (CESs) -- that enables voice, video and data communications.

MORE CARRIER ROUTER AND SWITCH MARKET HIGHLIGHTS

  • Worldwide service provider router and switch revenue was $3.8 billion in 4Q14, up 2 percent on a quarter-over-quarter and year-over-year basis
  • Sales in the core router segment dipped 5 percent in 2014 from the previous year as expected due to the volume of capacity already "in the ground"
  • Carriers in North America exercised caution in their router/switch spending in 2014, sending revenue down 7 percent from 2013
  • However, the other major geographical regions -- EMEA, Asia Pacific and Latin America -- were in positive territory in 2014
    • China came to the rescue of a flat 2014 Asian telecom economy with a double-digit increase over the previous year
  • On the whole in 2014 and 4Q14, the top 4 router and CES manufacturers -- Alcatel-Lucent, Cisco, Huawei and Juniper -- stayed in dominant positions, together taking 85 percent of revenue

CARRIER ROUTER / SWITCH REPORT SYNOPSIS
Infonetics' quarterly service provider router and switch report provides worldwide, regional, China and Japan market share, market size, forecasts through 2019, analysis and trends for IP edge and core routers, vRouters and carrier Ethernet switches. Vendors tracked: Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Coriant, Ericsson, Fujitsu, Hitachi, Huawei, Juniper, NEC, UTStarcom, ZTE, others. To purchase the report, contact Infonetics: www.infonetics.com/contact.asp.

ANALYST CONFERENCE CALL FOR CLIENTS
Clients: Log in to watch on-demand analyst Michael Howard's carrier router and switch market recap and outlook: www.infonetics.com/cgp/login.asp?id=1086.

RELATED RESEARCH

RECENT AND UPCOMING RESEARCH
Download Infonetics' 2015 service brochure or log in: www.infonetics.com/login.

INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)

  • Bare Metal Switching: Is it for Everyone? (Apr. 30: Attend)
  • The Fast Way to Launch New Broadband Services: Virtual Networking (Watch now)
  • Choosing the Right SDN-NFV Orchestration Platform for the Job (Watch Now)
  • NFV with SDN Service Chaining for Quickest New Revenue (Watch Now)
  • Service Provider Experiences with NFV: The Good, Bad and Ugly (June 9: Sponsor)
  • Which Architecture is Best for SDN? (Sponsor)

TO PURCHASE RESEARCH, PLEASE CONTACT:

North America (West), Asia Pacific: Larry Howard Larry.Howard@ihs.com +1 408-583-3335

North America (East, Midwest), Latin America, EMEA: Scott Coyne Scott.Coyne@ihs.com +1 408-583-3395

Greater China, Southeast Asia, India: 大中华区 Jeffrey Song Jeffrey.Song@ihs.com +86 21-3919-8505

Japan 日本 Takashi Kimura, TAK Analytics takashi.kimura@takanalytics.com +81 3-6408-5566

About IHS (www.ihs.com)
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.

About Infonetics Research (www.infonetics.com)
Infonetics Research, now part of IHS (NYSE: IHS), 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 more effectively. Follow Infonetics on Twitter for the latest headlines: http://twitter.com/infonetics.

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Contact Information

  • News Media Contact:

    Michael Howard
    Senior Research Director, Carrier Networks
    Infonetics Research / IHS
    +1 408-583-3351
    Email contact
    Twitter: @MichaelVHoward