The service provider router market clawed its way to a 5 percent increase for all of last year after shrinking in 2012.
Sales of service provider routers rebounded to a record level of $9.7 billion last year and are expected to accelerate this year, according to a report by Dell’Oro Group.
“In many ways, 2013 was a transitional year. From a regional perspective, the majority of market growth came from Europe and Asia, while demand in North America flattened,” said Alam Tamboli, business analyst at Dell’Oro Group and author of the report. “We also saw new technologies such as 100 Gigabit Ethernet start to ramp, which is a strong indicator of an impending product upgrade cycle that will accelerate market growth this year.”
The report said that the top-four vendors accounted for 94 percent of the market share last year. A breakdown of the top-four vendors, in rank order, included:
• Cisco—Lost three percentage points of market share but still held nearly twice the market share of the second ranked vendor.
• Juniper Networks—Recorded double-digit revenue growth stemming from exceptionally strong demand in North America.
• Alcatel-Lucent—Maintained share as strong growth in Europe and Asia offset a decline in North America.
• Huawei—Gained the most share of all vendors due to strong sales in the China market.