Global router, switch market down 14 pc in 1Q12

CALIFORNIA, USA: The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), sequentially decreased 14 per cent to $3.3 billion in the first quarter of 2012 (1Q12), reports market research firm Infonetics Research.

In its latest Service Provider Routers and Switches report, the research firm also finds that from the year-ago first quarter, the market is essentially flat, down just one per cent.

"The best way to look at the carrier router and switch market is to analyze the 'IP Edge,' the sum of edge routers and carrier Ethernet switches, since routers can switch and switches can route, and many are deployed both ways," notes Michael Howard, Infonetics Research's co-founder and principal analyst for carrier networks. "Cisco, Alcatel-Lucent, and Juniper all gained IP Edge market share in the first quarter, Cisco the most by far, increasing its share from about 31 per cent to about 39 per cent quarter-over-quarter."

While the global service provider router and switch market declined in 1Q12, the North American market was up a very healthy 27 per cent quarter-over-quarter and up nine per cent from the year-ago first quarter.

The US has been showing many economic growth signals.

"Cisco is showing signs of a regained focus, and with the biggest installed base of routers at both operators and enterprises, they have an advantage that is hard to compete with," Howard adds.

In 1Q12, Cisco, Juniper, and Huawei together took 96 per cent of global core router revenue.

However, Alcatel-Lucent just entered the core router market, which will shake up the vendor market share landscape once revenue from ALU's new core router materializes later this year.

Service provider routers and switches are the second largest telecom market segment in 2011 total revenue (~$14.5 billion) after mobile RAN spending ($30+ billion).