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Service provider router and switch market to be worth US$10 billion market by ’09

Strong IP router and carrier Ethernet switch and router (CESR) sales will push the worldwide market to US$10 billio...


February 22, 2006  


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Strong IP router and carrier Ethernet switch and router (CESR) sales will push the worldwide market to US$10 billion in 2009, up from US$7.2 billion in 2005, according to 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 US$2.1 billion to US$5 billion, as carriers rely more and more on Ethernet to transport IP traffic in their networks.

“Service providers are clearly moving toward next -gen IP networks, and Ethernet plays a strong growing role in that move,” said Michael Howard, principal analyst at Infonetics. “It is no surprise that carrier Ethernet switches and routers (CESR) show up big in 4Q05 in our new quarterly report.”

A total of US$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 US$4 billion to US$5.2 billion and multiservice switch revenue dropped 5% between 2004 and 2005, from US$2.1 billion to US$2 billion.

Carrier Ethernet switch and router revenue, meanwhile, totaled US$617 million in the fourth quarter

Cisco maintained its 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.

Analysis and rankings are provided for a number of vendors including Alcatel, Cisco, Huawei, Juniper, Marconi and Nortel.