Telecoms router and switch spending up 19% to $3.9 bn in Q2

Telecom service provider switching and router spending in Asia Pacific

Telecom service provider router and switch revenue rose 19 percent to $3.9 billion in the second quarter of 2015, said IHS.

“While the SDN (software-defined networking) hesitation that we’ve been talking about the past many quarters is still in play in the carrier routing and switching space, core router upgrades and replacements prompted by the move to 100GE contributed to a nice uptick in the second quarter,” said Michael Howard, senior research director for carrier networks at IHS.

The worldwide service provider router and switch market will grow at 2 percent compound annual growth rate (CAGR) from 2014 to 2019, IHS. This is primarily due to slowing router and CES (carrier Ethernet switch) spending.

Carrier switching and routing revenue increased in all major geographical regions in Q2 2015 from a year ago. In Asia Pacific, the telecom SP switching and routing declined 16 percent.

Cisco is leading the global router market, while Huawei maintained the second spot. Juniper moved to third position, while Alcatel-Lucent is in 4th rank.

Meanwhile, Cisco came out on top of respondent edge/core router and carrier Ethernet switch (CES) manufacturer leadership scores for the third consecutive year in the 2015 IHS Infonetics Router and Switch Vendor Leadership: Global Service Provider Survey from IHS.

Baburajan K
[email protected]