SOURCE: Infonetics Research

February 27, 2009 18:36 ET

Infonetics Research: Great year for service provider router market, but 4Q showed signs of downturn

CAMPBELL, CA--(Marketwire - February 27, 2009) - Communications market research firm Infonetics Research released the fourth quarter (4Q08) edition of its Service Provider Routers and Switches report this week. Highlights from the market research report follow.

ANALYST NOTE

"At the tail end of a great 2008, we saw the effects of carrier cautiousness in the service provider router and switch market, as IP edge and core routers, carrier Ethernet switches, and multiservice ATM switches were all down sequentially in the fourth quarter, normally a strong quarter for this market. The good news is that IP edge and core routers are up year-over-year and as compared to the fourth quarter of 2007, indicating the general trend is still up. Still, the down fourth quarter is a bellwether: we expect a slight dip in the overall market in 2009 before resuming growth in 2010."

Michael Howard, Principal Analyst - Optical, Routing, Switching, and Ethernet - Infonetics Research

HIGHLIGHTS

--  The worldwide service provider router and switch market grew 15% in
    2008 over 2007 to $12.8 billion, but declined 6% in 4Q08 over 3Q08
      --  2008 was a great year for routers, with IP edge and IP core
          routers up a combined 26% in 2008
      --  Carrier Ethernet switches dipped 4% in 2008, as many
          Ethernet-configured and -priced edge routers were purchased for
          Ethernet access transport applications rather than CES products
      --  Multiservice ATM switches continued their expected decline in
          2008, dropping below $1 billion for the first time in many years,
          with their only staying power provided by mobile backhaul
          networks
--  Sales of service provider routers and switches varied widely region to
    region in 4Q08, with strong sales in Central and Latin America, led by
    Cisco, helping to offset declines in Asia Pacific, EMEA, and North
    America
--  For the year, Cisco maintains its strong leadership in the combined IP
    edge router and IP core router segments, although Juniper,
    Alcatel-Lucent, Huawei, Ericsson-Redback and Tellabs all gained revenue
    market share in 2008, eating into Cisco's lead

REPORT SYNOPSIS

Infonetics' router and switch report tracks Alcatel-Lucent, Ciena, Cisco, ECI, Ericsson-Redback, Extreme, Foundry, Fujitsu, Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens, Nortel, Tellabs, and others.

The report provides worldwide and regional market share, market size, forecasts through 2013, port details, and analysis for IP core and edge routers, carrier Ethernet switches (CES), and multiservice ATM switches. The report also tracks IP edge routers and CES by application (multiservice edge, BRAS, Ethernet access transport, and Ethernet services edge).

DOWNLOAD OR BUY THIS REPORT

To download this report if your organization has purchased it, or to download sample data from the report, log on to Infonetics' portal from www.infonetics.com.

For sales, please contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research 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.

Contact Information

  • Lead Analyst:
    Michael Howard
    Principal Analyst - Optical, Routing, Switching, and Ethernet
    Infonetics Research
    Email Contact
    +1 408.583.3351

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