Telecom router and switch revenue reaches $14.6 bn in 2014

The telecom service provider router and switch revenue reached $14.6 billion in 2014 with a flat growth — as SDN (software-defined networking) hesitation slowed spending.

Michael Howard, principal analyst for carrier networks at Infonetics Research, now part of IHS, said that the router and switch spending will slowly climb to $17 billion in 2019, a five-year compound annual growth rate (CAGR) of just over 3 percent.

In Q4 2014, worldwide service provider router and switch revenue rose 2 percent to $3.8 billion.

Carrier Router and Switch Market in 2014

Sales in the core router segment fell 5 percent in 2014 due to the volume of capacity already in the ground.

Carriers in North America exercised caution in their router / switch spending in 2014, sending revenue down 7 percent.

EMEA, Asia Pacific and Latin America were in positive territory in 2014. China had a double-digit increase.

Alcatel-Lucent, Cisco, Huawei and Juniper stayed in dominant positions, together taking 85 percent of revenue.