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Dell’Oro: Router market expanding

In a newly published report, Dell'Oro Group predicts that the worldwide router market will grow from US$6.3 billion...


July 30, 2004  


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In a newly published report, Dell’Oro Group predicts that the worldwide router market will grow from US$6.3 billion in 2003 to US$9.2 billion in 2008.

According to the report, telecommunications and Internet service providers will contribute the largest proportion of the growth, increasing their router purchases at an average annual rate of 14% from 2003 to 2008, a rate approximately three times greater than the rate that enterprises are projected to increase purchases.

“The proliferation of broadband Internet access is pushing service providers to continuously expand their Internet protocol networks,” said Shin Umeda, principal analyst of routers research at Dell’Oro Group, based in Redwood City, Calif. .

“Since bigger and faster routers are needed to keep up with the IP traffic generated by the rising number of subscribers, routers deployed at the core of the network will increase almost 50% in 2004, but longer term it is those deployed at the edge that are the growth engine.”