Service Provider Router Market Contracted in the Fourth Quarter, According to Dell'Oro Group

Strong Demand for IP Routers in Asia and Latin America Offset by Weakness in North America and Europe

News provided by

Mar 01, 2012, 09:00 ET

REDWOOD CITY, Calif., March 1, 2012 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the Service Provider Router market experienced its first year-over-year decline in two years as sales declined 7% to $2.7 billion in the fourth quarter of 2011. The bulk of the market contraction occurred in the North America and Europe, where telecom service providers tightened the belt on capital budgets and became increasingly cautious due to macroeconomic uncertainties. Market demand remained strong in the stronger economies within the Asia and Latin America regions.

(Logo: http://photos.prnewswire.com/prnh/20101012/SF80035LOGO)

"From the beginning of 2010 through mid-2011, router sales grew more than 20% each quarter, but started to decelerate last summer," said Shin Umeda, Vice President at Dell'Oro Group. "We think this is a temporary lull that will carry into the middle of this year, and we expect the market growth to accelerate in the second half of the year," added Umeda.

The top five Service Provider Router vendors for 4Q11, in ranking order were Cisco, Juniper, Alcatel-Lucent, Huawei, and Ericsson.

About the Report
The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the Service Provider Core and 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 Jessica Hsueh at +1.650.622.9400 x222 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.

SOURCE Dell'Oro Group