SOURCE: Infonetics Research

February 26, 2007 17:54 ET

IP router and carrier Ethernet switch sales surge in 2006

CAMPBELL, CA -- (MARKET WIRE) -- February 26, 2007 --Between 2005 and 2006, worldwide service provider router and switch revenue grew 33%, from $7.2 billion to $9.6 billion, fueled by surging carrier Ethernet switch and IP router sales, according to Infonetics Research's "Service Provider Routers & Switches: IP, Ethernet & ATM" report.

The strong annual growth in the overall market is especially impressive considering multiservice ATM switch revenue dropped 32% to $1.3 billion during that same period, after a high of nearly $5 billion in 2000.

"As ATM investment steeply declines, investment in the edge continues to grow, with IP edge routers growing at a fast clip between 2006 to 2010 and carrier Ethernet switches (CES) growing 3 times as fast. Carriers continue to transition to IP, as witnessed by the many IP network transformation projects around the globe to increase bandwidth for video and other advanced applications, and CES and IP edge routers are a big part of this transformation," said Michael Howard, principal analyst and co-founder of Infonetics Research.

Service Provider Router and Switch Highlights

--  The overall market is up 7% for the quarter, from 3Q06 to 4Q06, and is
    forecast to grow 136% to $13 billion between 2006 and 2010
--  Cisco increased its service provider router and switch sales by more
    than $1.5 billion between 2005 and 2006, maintaining its strong lead in the
    market both in 4Q06 and CY06, accounting for about half of worldwide
--  Alcatel-Lucent holds second position for worldwide revenue in the
    overall market, followed by Juniper, in 4Q06 and CY06
--  35% of worldwide IP edge router/carrier Ethernet switch revenue is
    generated by Ethernet access transport applications, and share will
    increase through at least 2010
--  39% of all service provider router and switch revenue comes from North
    America, 32% from EMEA, 25% from Asia Pacific, and 5% from CALA
Infonetics' quarterly report provides market share, market size, and forecasts for IP core and edge routers, multiservice core and edge ATM switches, enterprise-class Ethernet switches, and carrier Ethernet switches and routers. The report also tracks IP edge routers and carrier Ethernet switches by application (multiservice edge, BRAS, Ethernet applications, Ethernet access transport, and Ethernet services edge).

The report tracks Alcatel-Lucent, Avici, Ciena, Cisco, Ericsson/Marconi, Fujitsu, Huawei, Juniper, NEC, Nortel, Redback, Tellabs, ZTE, and others.

Download sample data at For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.

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

Contact Information

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