Worldwide revenue for service-provider routers and switches totaled $1.6 billion in the third quarter of 2004, up 11% from the previous quarter and 28% year-over-year, according to Infonetics Research’s quarterly worldwide market share and forecast service, “Service Provider Routers and Switches.” Worldwide revenue is expected to reach $8.4 billion by 2007.
Worldwide revenue for total service-provider multiservice switches increased 9% in the third quarter of ’04-a 24% increase year-over-year, thanks to particularly strong gains from the edge segment. The multiservice edge switch market grew the most sequentially; however, overall router growth continues to outpace multiservice-switch increases.“The service-provider router and switch market continues to outpace our projections,” notes Kevin Mitchell, directing analyst and lead author of the report. “Despite the focus on IP/MPLS, even the maligned multiservice-switch market saw strong quarterly gains, driven by broadband aggregation, wireless backhaul, and organic Frame Relay and ATM services growth. However, the router market continues to make strong sequential and annual gains with the edge and core segments growing, and the market share battles in all markets are getting more interesting to watch.”
According to the report, Cisco Systems maintains its hold on the top spot for core-router worldwide revenue with a 58%market share. Its core-router revenue was up 5% in the third quarter of ’04. Juniper Networks saw its core-router revenue increase 26% in the same quarter, landing it in second place behind Cisco, with 36% of the market. The worldwide edge- and core-router market topped $1 billion in the third quarter for the first time.
For more information on the report, visit www.infonetics.com.