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BOSTON, Massachusetts, February 15, 2006—Price pressure put the squeeze on the worldwide enterprise router market in 2005, forcing overall revenue down 3% to $3.3 billion from 2004’s $3.4 billion, but global demand for routers remains strong, evidenced by the 14% year-over-year increase in unit shipments, according to Infonetics Research’s latest Enterprise Routers report.
“Overall the enterprise router market had a good year,” said Matthias Machowinski, directing analyst at Infonetics Research. “Though revenue didn’t quite keep pace with unit shipments, demand is solid. The transition from standard to secure routers is speeding up, with secure router revenue skyrocketing and unit shipments practically tripling in the last year. The underlying fundamentals of the market are strong because companies continue to upgrade their networks and look for platforms that integrate security features, QoS, and support for VoIP.”
Market Highlights
- Though revenue was down a bit for the year, it was up for the quarter: worldwide enterprise router revenue increased 6% between 3Q05 and 4Q05, to $910 million
- Worldwide secure router revenue jumped 121% between 2004 and 2005, from $363 million to over $803 million, and unit shipments nearly tripled
- In 2005, Cisco lead the enterprise router market by a wide margin, capturing 81% of worldwide revenue share and 71% unit share
- Hauwei remains in second place for secure router unit shipment and revenue market share
- Nortel maintains third position for worldwide enterprise router revenue share, a position it has held for six of the last eight quarters
Infonetics releases its 2009 enterprise router forecast February 17. The report tracks standard and secure high-end, mid-range, and low-end routers. Forecasts and market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA). Companies tracked include 3Com, ADTRAN, Allied Telesyn, Cisco, Enterasys, Huawei, Juniper, Nortel, Siemens, Vanguard, others.
Download report highlights at www.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.
Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research and capex analysis.
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