Service Provider Edge Router Market Follows Record Year with Subdued Growth of 3% in 1Q15, According to Dell'Oro Group

Mobile Backhaul Primary Driver to Revenue Increase

News provided by

Jun 02, 2015, 09:03 ET

REDWOOD CITY, Calif., June 2, 2015 /PRNewswire/ -- In a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center information technology (IT) industries, the worldwide Service Provider Edge Router market grew slowly in the first quarter 2015 after a record year in 2014. During this quarter the Service Provider Core Router market outflanked growth in the Edge for only the second time in five years.

"The wild swings that we used to see in Service Provider Edge Router demand have smoothed out somewhat in recent years. This is the fourth consecutive quarter in which we have seen single-digit year-over-year changes in market demand," said Alam Tamboli, Senior Analyst at Dell'Oro Group. "We continue to see Service Providers invest heavily in their mobile backhaul networks and associated routers—some mobile operators are already beginning to upgrade their installed base of routers to higher capacity devices due to increased traffic demand. However, many operators have slowed their spending on routers used for fixed networks, partially offsetting this growth," Tamboli continued.

Cisco Systems, Alcatel-Lucent, Juniper Networks, and Huawei Technologies were the market share leaders in the Service Provider Router market segment, accounting for over 92 percent of revenue in 1Q15. Cisco maintained its leadership position, while Alcatel-Lucent, Juniper, and Huawei held, in rank order, the second, third, and fourth spots.

About the Report

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 Matt Dear at +1.650.622.9400 x233 or email [email protected]

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides an in-depth quantitative data and qualitative analysis that enables business executives at equipment vendors, component manufacturers, service providers, investment firms and other leading organizations around the world, to make critical, fact-based business decisions. We have earned the reputation of being the trusted source for market research. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

Logo - http://photos.prnewswire.com/prnh/20101012/SF80035LOGO

SOURCE Dell'Oro Group