Campbell, CALIFORNIA, February 21, 2013—Market research firm Infonetics Research today released vendor market share and preliminary analysis from its 4th quarter 2012 (4Q12) and year-end Service Provider Routers and Switches report. (Full report published February 25.)
“The global carrier router and switch market ended 2012 with a small 4% loss, but it could have been worse,” notes Michael Howard, Infonetics Research’s co-founder and principal analyst for carrier networks. “Significant budget flushes from operators in Europe, China and Latin America buoyed the overall market in the final quarter of the year.”
“Looking ahead,” Howard adds, “We expect the service provider switch and router market to grow again in 2013. The US economy is in better shape and we are predicting an increase in worldwide carrier capex this year. In EMEA, activity looks good for the Middle East and, to some degree, Africa, and Europe seems to have hit bottom. If our talks with European service providers prove true, then we can expect a slow climb for the IP router and switch market there, albeit from this lower starting point. Operators know they need to spend on their networks or risk becoming uncompetitive.”
SERVICE PROVIDER ROUTER AND SWITCH MARKET HIGHLIGHTS
- For all major world regions except North America, the 4th quarter of 2012 was strong, with global IP edge and core router and carrier Ethernet switch revenue rising to $3.8 billion, up 12% from the previous quarter
- While North America was down a bit sequentially in 4Q12, the region is up 13% from the year-ago 4th quarter, the highest year-over-year gain of any region
- In 2012, sales of core routers slowed more than edge routers, as the coming move to 100G is making carriers increasingly cautious as they choose the next generation of higher-capacity core routers
- The top 4 manufacturers in the router and carrier Ethernet switch segment stayed in dominant positions in 2012, with #1 Cisco and #2 Huawei holding steady, while Alcatel-Lucent moved into the #3 spot, bumping Juniper to #4
- In the race for router-only market share, Cisco maintained the top position in 2012, but Huawei and Alcatel-Lucent boosted their revenue market share following big gains in 4Q12
CLIENT CONFERENCE CALL
Clients: Join Michael Howard Friday, March 8, at Noon ET for a live router and switch market recap. Log in to https://www.infonetics.com/cgp/login.asp?id=704 for password to join the call live or view on-demand.
Infonetics’ quarterly routers and switches report provides worldwide, regional, China, and Japan market share, market size, forecasts, analysis, and trends for IP edge and core routers and carrier Ethernet switches. The report tracks the IP edge market by application (multiservice edge, broadband remote access server (B-RAS), Ethernet access transport, and Ethernet service edge) and covers Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Ericsson, Extreme, Fujitsu, Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens Networks, Tellabs, ZTE, and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.
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Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively. View Infonetics' brief About Us slides at http://bit.ly/QUrbrV.
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