Dell'Oro: Service Provider Edge Router Market Grows 3% in 1Q15

The worldwide Service Provider Edge Router market grew slowly in the first quarter 2015 after a record year in 2014, according to a new report from Dell'Oro Group.  During this quarter the Service Provider Core Router market outflanked growth in the Edge for only the second time in five years.

"The wild swings that we used to see in Service Provider Edge Router demand have smoothed out somewhat in recent years.  This is the fourth consecutive quarter in which we have seen single-digit year-over-year changes in market demand," said Alam Tamboli, Senior Analyst at Dell'Oro Group.  "We continue to see Service Providers invest heavily in their mobile backhaul networks and associated routers—some mobile operators are already beginning to upgrade their installed base of routers to higher capacity devices due to increased traffic demand.  However, many operators have slowed their spending on routers used for fixed networks, partially offsetting this growth," Tamboli continued.

Cisco Systems, Alcatel-Lucent, Juniper Networks, and Huawei Technologies were the market share leaders in the Service Provider Router market segment, accounting for over 92 percent of revenue in 1Q15.  Cisco maintained its leadership position, while Alcatel-Lucent, Juniper, and Huawei held, in rank order, the second, third, and fourth spots.

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