Demand for Service Provider Routers Weakens in Third Quarter 2014, According to Dell'Oro Group

Service Provider Core Router Market Falls after Five Quarters of Year-over-Year Growth

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Dec 02, 2014, 09:02 ET

REDWOOD CITY, Calif., Dec. 2, 2014 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the overall Service Provider Router market declined slightly losing two percent in the third quarter of 2014 versus the year-ago period.

"The Service Provider Core Router market suffered the most this quarter, falling almost eight percent versus last year, while the Service Provider Edge Router market was flat," said Alam Tamboli, Senior Analyst at Dell'Oro Group. "Looking ahead to 2015, we anticipate stronger demand for core routers as technologies such as 100 Gigabit Ethernet becomes more affordable and service providers complete their evaluations of newer core routing platforms. In the Service Provider Edge Router market, we expect low single-digit growth as many service providers continue to deploy routers for their LTE backhaul networks while other service providers cut back on investment into their fixed IP traffic networks," Tamboli added.

Cisco Systems, Alcatel-Lucent, Juniper Networks, and Huawei Technologies were the market share leaders in the Service Provider Router market segment, accounting for over 94 percent of third quarter revenue. Cisco remained the share leader in the market for the third quarter. Alcatel-Lucent took second place ranking while Juniper and Huawei were the third and fourth-ranked vendors, respectively.

Worldwide Service Provider Router Market Leaders (Revenue)


Vendor	3Q14 Rank	Y/Y Growth
Cisco	1	-5%
Alcatel-Lucent	2	13%
Juniper	3	-11%
Huawei	4	-3%

About the Reports
The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the Service Provider Core, Edge, and Enterprise Router markets for current and historical time periods. The report includes qualitative analysis and detailed statistics for vendor market shares, revenue, average selling prices, and unit and port shipments. To purchase this report, please call Julie Learmond-Criqui at +1.650.622.9400 x244 or email [email protected]

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

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SOURCE Dell'Oro Group