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Service provider router and switch market grew in 2005

Mar 02, 20062 mins
Network SwitchesServers

* Service provider router and switch market expected to realize double-digit growth by 2009

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.

Managing Editor

Jim Duffy has been covering technology for over 28 years, 23 at Network World. He covers enterprise networking infrastructure, including routers and switches. He also writes The Cisco Connection blog and can be reached on Twitter @Jim_Duffy and at

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