Telecom Lead Asia: Cisco Systems, Juniper Networks, Alcatel-Lucent, Huawei Technologies and Brocade are the top 5 100G vendors in service provider router market in Q3 2012

Dell’Oro Group said the Internet is undergoing a major jump in transmission speeds as network operators expand deployments of 100 Gigabit Ethernet technologies in their backbone networks.  The migration to 100 Gigabit Ethernet represents a significant jump over the 10 and 40 Gigabit technologies widely deployed in Internet routers today.

The new high-speed technology enables operators to add network capacity in larger increments and at lower costs, and is expected to see steady adoption for at least the next five years. During the third quarter of the year, a record number of 100 Gigabit Ethernet router ports were shipped.

“Shipments of 100 Gigabit Ethernet for Internet-class routers have nearly tripled over the first nine months of the year and are on track to generate about $500 million in router sales for 2012,” said Shin Umeda, vice president, Dell’Oro Group.

Dell’Oro Group estimates that the demand to almost double again next year, making for a very significant opportunity for router manufacturers.

In January 2012, Ovum said 40G and 100G are attractive to carriers faced with exploding bandwidth demand driven by voice, data, wireless, and video applications. Interconnecting core routers and scaling optical capacity are the two largest applications for high-speed optics.

Only a few vendors have 100G product shipping as of January 2012, but a whole lot more will by early 2012. The limited 100G availability has delayed some market deployments. The market will increasingly ramp through 2012 as more vendors’ products become generally available, according to Ovum. The 40G market has reached generalized deployment with nearly 40,000 ports shipped, while the 100G market is still in a very early stage. We expect a wave of vendors to begin shipping and recognizing revenues in 2012.

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