Service Provider Router and Switch Market on Track to Hit $20.2 Billion
Global demand for networking gear is still growing, at least in terms of demand for routers and switches from service providers.
According to Infonetics Research 3Q13 Service Provider Routers and Switches report, the market for iP edge and core routers and carrier Ethernet switches grew by seven percent on a year-over-year basis, with revenue now totalling $3.6 billion for the quarter.
"All three main IP router/switch categories – edge routers, core routers, and carrier Ethernet switches (CES) – are up from a year ago," Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research said in a statement.
The top vendor in the space is Cisco, followed by Alcatel-Lucent in second and Juniper holding down the third spot in terms of global revenues.
For the 2012-2017 time period, Infonetics is now forecasting a Compound Annual Grow Rate (CAGR) of seven percent, which will bring revenues up to $20.2 billion by 2017.
Infonetics also recently published preliminary data from its 3rd quarter 2013 (3Q13) Data Center Network Equipment report, sizing the Application Delivery Controller (ADC) and WAN Optimization markets.
According to Infonetics, global revenues for the ADC market reached $435 million during 3Q13. In terms of vendors, F5 remains the top vendor by revenue, followed by Citrix in the number two spot. A key driver for ADC growth are virtual appliances.
"We believe that virtual solutions will continue to move the application delivery controller (ADC) market forward, and while the shift to virtual products might brake top line revenue growth in the short term due to lower ASPs versus their hardware-based counterparts, it's likely to be margin neutral," Cliff Grossner, Infonetics Research's directing analyst for data center and cloud, said in a statement.
The WAN optimization business isn't doing as well as the ADC market, according to Infonetics' analysis. WAN optimization revenues reached $210 million in the 3Q13 which is a nine percent year-over-year decline. Riverbed leads the WAN optimization market, followed by Cisco and Blue Coat.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist