Asian Pacific telecom operator switching and routing revenue to grow by 9.7% in 2012: Ovum

Telecom Lead Asia: Ovum said the service provider
switching and routing (SPSR) market revenue will grow by 9.7 percent in the
Asia-Pacific market in 2012.


In terms of revenues in Asia-Pacific, the edge router
segment is leading the way, reaching $4.2 billion in 2017, while the core
router segment will touch $1.6 billion and the IP/Ethernet router segment will
reach $1.4 billion. The edge router plays a key role in carrier networks as the
control point for delivering subscriber services.


The global service provider switching and routing (SPSR)
market revenue will touch $20.5 billion in 2017 from $13.3 billion in 2010,
with a CAGR of 6.4 percent.


The strong IP traffic growth is primarily driving demand
for switches and routers in service provider networks. The growth is likely to
increase further as fixed and mobile broadband subscriber penetration rates
increase. Increase in consumer video applications will also fuel the growth.


Top 5 vendors in service provider routers and switches market
based on market share


According to Infonetics Research, the carrier router and
switch market achieved $14.5 billion revenue in 2011, up 8 percent over 2010.
Cisco, Alcatel-Lucent, Huawei, Juniper and ZTE are the top five vendors in the


The service provider routers and switches market is the
second largest telecom market segment after mobile RAN infrastructure.


Cisco continues to lead the IP Edge segment, commanding
about a third of the global market in 2011, while its competitors —
Alcatel-Lucent, Huawei, Juniper, ZTE — all gained market share in 2011.


Carriers will need to invest in growing their IP
infrastructure or risk losing subscribers. In developing nations, carriers are
building out their 3G wireless networks, while developed nations are investing
in LTE to accommodate mobile bandwidth demand,” said David Krozier, principal
analyst, network infrastructure, Ovum.


North America was the largest geographical regions in
2011 and the Asia-Pacific region, which contains two of the top three global
economies (China and Japan), was a close second.


Ovum forecasts 9.7 per cent growth in the Asia-Pacific
market in 2012 and 4.0 per cent growth in North America. With this disparity in
growth, the Asia-Pacific region will surpass North America as the largest
regional market for SPSR equipment for 2012.


The SPSR market in the Asia-Pacific and South &
Central America regions will grow faster than the global CAGR of 6.4 percent.
Asia-Pacific region will have a CAGR of 8.1 percent, growing from $4.2 billion
in 2010 to $7.3 billion in 2017.


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