Service provider router, Carrier Ethernet switch sales set record in 2015: Dell'Oro

Global sales of service provider routers and Carrier Ethernet switches reached record highs in 2015, according to a new report from Dell'Oro Group. Alcatel-Lucent (now part of Nokia) and Juniper Networks benefited from the interest in the former category; their sales of service provider routers in the fourth quarter of 2015 also established records, according to the market research firm.

Dell'Oro didn't immediately release that actual figures for the year, undoubtedly with an eye toward boosting sales of the report. Nevertheless, Alam Tamboli, senior analyst at Dell'Oro, did add some color via a press release.

"The service provider router and Carrier Ethernet switch market continued to grow in 2015 with strong contributions from service provider core routers and the Carrier Ethernet switches," according to Tamboli. "However, the service provider edge router market fell after a strong 2014.

"Core router strength was sourced from operators building out their 100 Gigabit Etherent backbones, while Carrier Ethernet Switch demand came from mobile backhaul investment in China," he continued. "Virtually all major router vendors also greatly benefitted from AT&T's entry into Mexico, which brought demand from AT&T and its competitors.

"Going into 2016, we expect that the introduction of technologies like G.fast, DOCSIS 3.1, and LTE will drive up IP traffic. These technologies will require more investment in IP router and Carrier Ethernet switch infrastructures," Tamboli concluded.

Cisco Systems, Alcatel-Lucent, Juniper Networks, and Huawei Technologies (in order) topped the 2015 market share leaderboard in the service provider router and Carrier Ethernet switch market, according to Dell'Oro. The four firms accounted for almost 90% of sales revenue in 2015.

The "Router & Carrier Ethernet Switch Quarterly Report" covers the service provider core, edge, access (predominantly Carrier Ethernet switch), and enterprise router markets. The report offers analysis and statistics for vendor market shares, revenue, average selling prices, and unit and port shipments.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.