SOURCE: Infonetics Research

February 21, 2006 14:06 ET

Service Provider Routers and Switches a $10B Market in 2009

CAMPBELL, CA -- (MARKET WIRE) -- February 21, 2006 --Strong IP router and carrier Ethernet switch and router (CESR) sales will push the worldwide service provider router and switch market to $10 billion in 2009, up from $7.2 billion in 2005, says a new forecast in Infonetics Research's Service Provider Routers and Switches report.

While multiservice switch sales are expected to continue to decline, the emerging CESR products are forecast to more than double between 2005 to 2009, from $2.1 billion to $5.0 billion, as carriers rely more and more on Ethernet to transport IP traffic in their networks.

Meanwhile, the ratio of routers to multiservice switches (MSS) continues to shift dramatically:

--  In 2000, routers made up 47% of worldwide router/switch revenue share,
    MSS made up 53%
--  In 2005, routers made up 73%, MSS 27%
--  In 2009, routers will make up 83%, MSS 17%
"Service providers are clearly moving toward next gen IP networks, and Ethernet plays a strong growing role in that move. It is no surprise that carrier Ethernet switches and routers (CESR) show up big in 4Q05 in our new quarterly report. Providers need carrier-class products; eventually, nearly every service provider IP router will be designed to meet the specifications of CESR products," said Michael Howard, principal analyst at Infonetics.

More Highlights

--  A total of $43.4 billion will be spent on service provider routers and
    switches worldwide during the five-year period between 2005 and 2009
--  Core and edge router sales jumped 31% between 2004 and 2005, from $4.0
    billion to $5.2 billion
--  Multiservice switch revenue dropped 5% between 2004 and 2005, from
    $2.1 billion to $2.0 billion
--  Carrier Ethernet switch and router revenue totaled $617 million in the
    fourth quarter
--  Cisco maintains its strong lead in the service provider router market,
    with 42% revenue share in 2005, followed by Juniper with 19%, then Nortel
    and Alcatel
--  North America’s share of the worldwide service provider router and
    switch market fell to 37% in 2005, from almost 60% in 2000
Infonetics' report tracks IP core and edge routers, multiservice core and edge switches, and carrier Ethernet switches and routers. Forecasts and market share are updated quarterly. Analysis and rankings are provided for Alcatel, Avici, Ciena, Cisco, Fujitsu, Huawei, Juniper, Lucent, Marconi, NEC, Nortel, Redback, Riverstone, Tellabs, and others.

Download sample data at For sales, contact Larry Howard, vice president:, (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 and service provider survey research, and service provider capex analysis.

Contact Information

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