Service provider router and switch market grew in 2005

The fourth quarter and full year of 2005 was a healthy one for service provider routers and switches.

According to various market research firms, the overall market increased by about 20% in 2005, to between $7 billion and $8 billion. While core and edge router sales jumped between 30% and 40%, the multiservice switch market declined by 5% from 2004.

Research from Dittberner’s states that the core router market grew 16% in 2005 while the edge market grew 55%. Infonetics says the strong IP router and carrier Ethernet switch and router sales (CESR) will push the worldwide service provider router and switch market to $10 billion in 2009, up from $7.2 billion in 2005.

Infonetics says this emerging CESR market will grow from $2.1 billion in 2005 to $5.0 billion in 2009. For the fourth quarter, CESR revenue totaled $617 million, according to the firm.

Ovum, meanwhile, states that the 12% growth in IP service infrastructure – IP routing, Ethernet switching, and ATM switching – in 2005 matches the growth in operator capex for the year. Revenue in 2005 for this market was $8.1 billion, according to Ovum.

A total of $43.4 billion will be spent on service provider routers and switches worldwide during the five-year period between 2005 and 2009, according to Infonetics. Dell’Oro Group expects 2005’s $4.4 billion market in service provider routers to realize double-digit growth for the next two years.