Cisco market share in service provider router dips in Q4, says Synergy Research

Cisco market share in service provider router segment decreased to 44 percent in the fourth quarter of 2013 from 49 percent in the first quarter, said Synergy Research Group.

However, Cisco remains the dominant router equipment vendor with a 47 percent of the full-year 2013 market.

Alcatel-Lucent was the second ranked vendor with an 18 percent market share, followed by Juniper with 17 percent in 2013.

Both Juniper and Alcatel-Lucent far surpassed the overall market growth rate and gained market share.

Juniper achieved over 13 percent growth.

Service provider router revenues grew 1.4 percent to $12.7 billion in 2013, said Synergy Research Group.

In Q4 total service provider router revenues reached $3.2 billion.

Core routers accounted for 19 percent of Q4 revenues, while edge routers accounted for 62 percent and Ethernet access-aggregation devices 19 percent.

North America remained the biggest region accounting for 36 percent of worldwide revenues, while the EMEA region saw the biggest growth and reached record levels.

Service provider router revenue growth

“We have seen some distinct market share shifts in 2013 and the recent announcements around NFV point to likely further changes in 2014,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst.

Recently, Dell’Oro Group said in its note that investment in routers for mobile backhaul networks will be the primary driver for the service provider edge router market through 2018.  The demand for these routers is expected to propel the worldwide service provider router market to almost $9 billion by 2018. The service provider edge router market is a subset of the service provider router market.

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