Worldwide sales of Service Provider Routers is projected to exceed $75 billion over the five years from 2020 to 2024, according to a new report from Dell'Oro Group. The delivery and adoption of 5G and cloud services are expected to drive investments in IP networks over the forecast horizon.
“We expect the overall SP Router market to grow at modest, low single-digit rates over the next five years, but there are network use cases such as mobile backhaul and backbone transport that will surge due to the uptake of 5G and cloud services, respectively,” said Shin Umeda, Vice President at Dell’Oro Group. “Vendors with the appropriate hardware and software solutions will benefit from the growth opportunities, but geographic presence will also play a big part in a company’s success,” added Umeda.
Additional highlights from the Router & Carrier Ethernet Switch Five Year Forecast:
- The Asia-Pacific region, led by China, is expected to produce the highest growth over the next five years.
- Revenue from 100 and 400 Gigabit Ethernet technologies is projected to account for almost half of router revenue by 2024.
