Cisco leads service provider router and carrier Ethernet switch market

Cisco, Huawei, Nokia and Juniper are the top four technology companies in the service provider router and carrier Ethernet switch market in Q1 2018.

US-based Cisco Systems is the number one technology supplier in the service provider router and carrier Ethernet switch market.

China-based Huawei Technologies is the number two supplier in the service provider router and carrier Ethernet switch market. Despite regulatory issues in the U.S. market, Huawei is the second largest selling brand in the service provider router and carrier Ethernet switch market globally.

Finland-based Nokia is the number three supplier in the service provider router and carrier Ethernet switch market.

US-based Juniper Networks is the fourth largest technology company in the service provider router and carrier Ethernet switch market.
Cisco for telecomsThese four technology vendors accounted for more than 90 percent of the market revenue in Q1 2018, according to a report by Dell’Oro Group. The Dell’Oro Group report did not reveal the specific market share of these four technology vendors.

The service provider router and carrier Ethernet switch market contracted year-over-year to its lowest level in five years in the first quarter of 2018.  The report said the quarterly contraction sets the stage for the first annual market decline since 2012 as telecom and cloud service providers reduce spending on IP infrastructure.

“Over the past two years, the Asia-Pacific region has been a growth engine for the router market, but in 1Q18, driven in part by saturation in the China telecom market, router demand experienced a sharp decline”, said Shin Umeda, vice president at Dell’Oro Group.

Despite the market’s revenue contraction, 100 Gigabit Ethernet port shipments grew more than 35 percent.

IDC report

Research agency IDC earlier said Ethernet switch market posted 10.9 percent growth to $6.29 billion in the first quarter of 2018.

Enterprise and service provider (SP) router market fell 1.4 percent to $3.31 billion.

Enterprise router market dipped 2.7 percent. Larger service provider routing market dropped 0.9 percent.

The router market has been impacted by the emergence of software-defined architectures that have taken hold across the WAN, with SD-WAN and network virtualization disrupting traditional routing architectures, said IDC.

Cisco has 53.4 percent share in Ethernet switching market and 39.8 percent share in service provider and enterprise router market.

Huawei’s Ethernet switch market share was 8.1 percent. Huawei’s enterprise and SP router share was 25.1 percent.

HPE (Hewlett Packard Enterprise) has Ethernet switch share of 6 percent.

Arista Networks has Ethernet switching market share of 6.5 percent.

Juniper’s Ethernet switch market share was 3.7 percent. Juniper’s share in service provider and enterprise router market was 12.3 percent.