According to Infonetics Research, the global telecom service provider router and switch revenue stood at $14.6 billion in 2014. Going forward, by 2019, the router and switch spending is expected to reach $17 billion witnessing a compound annual growth rate of over 3 per cent over the next four to five years.
Further, in the fourth quarter of 2014, worldwide service provider router and switch revenue increased by 2 per cent and stood at $3.8 billion. Meanwhile, the sales for core router segment declined owing to huge capacities already being utilised by the operators to support their existing networks.
Infonetics Research states that the router and switch spending in North America declined by 7 per cent in 2014 whereas other regions including Europe, the Middle East and Africa, Asia Pacific and Latin America witnessed positive growth in switch and router spending by the operators. Country wise, China reported a double digit growth in switch and router spending by operators.
In 2014, the global switch and router market was dominated by four leading vendors – Alcatel-Lucent, Cisco, Huawei and Juniper networks. Together the four vendors accounted for 85 per cent of the industry revenue.
