Cisco, Huawei Lead Rising Carrier Routing, Switching Market

PRESS RELEASE — CAMPBELL, CA–(Marketwired – August 31, 2015) – Following the typically slow first quarter, global service provider router and switch revenue spiked 19 percent in the second quarter of 2015 (2Q15), to $3.9 billion, according to the IHS Infonetics Service Provider Routers and Switches report from IHS (NYSE: IHS).

“While the SDN (software-defined networking) hesitation that we’ve been talking about the past many quarters is still in play in the carrier routing and switching space, core router upgrades and replacements prompted by the move to 100GE contributed to a nice uptick in the second quarter,” said Michael Howard, senior research director for carrier networks at IHS.

MORE ROUTER AND SWITCH MARKET HIGHLIGHTS

With the SDN hesitation slowing router and carrier Ethernet switch spending, IHS is projecting the worldwide service provider router and switch market to grow at a 2.0 percent compound annual growth rate from 2014 to 2019.

Carrier switching and routing revenue was up in all major geographical regions in 2Q15 from a year ago, with the exception of Asia Pacific, which was down 16 percent.

It was the usual suspects vying for router-only market share in 2Q15, with Cisco leading, Huawei maintaining the 2-spot, Juniper rising to 3^rd and Alcatel-Lucent a very close 4^th.

ROUTER AND SWITCH REPORT SYNOPSIS
The quarterly IHS Infonetics Service Provider Routers and Switchesmarket research report tracks the foundational network equipment-IP edge and core routers, vRouters and carrier Ethernet switches (CESs)-that enables voice, video and data communications. The research service provides worldwide, regional, China and Japan market share, market size, forecasts through 2019, analysis and trends. Vendors tracked include Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Coriant, Ericsson, Fujitsu, Hitachi Metals, Huawei, Juniper, NEC, UTStarcom, ZTE, others. To purchase the report, visit www.infonetics.com/contact.asp.

WEBINAR: SDN LESSONS LEARNED
Join analyst Michael Howard Sept. 24 at 11:00 AM ET for SDN and NFV: Lessons Learned Moving from the Lab to Commercial Service,an event sharing lessons learned by operators who have inserted SDN and NFV into their existing networks, including impacts on operational processes and procedures. Register here: http://event.on24.com/wcc/r/1032687/A057BCB49618F60C87CEB93F90666373.

RELATED RESEARCH
Carriers on Track to Spend $5.7B on SDN Hardware, Software & Services by 2019:
http://www.infonetics.com/pr/2015/Carrier-SDN-Market-Forecast.asp

Network Operators Reveal SDN Plans, Timing and Challenges in New Survey:
https://www.infonetics.com/pr/2015/SDN-Strategies-Survey.asp

Operators Rate Router and Switch Vendors; Cisco #1 for 3rd Straight Year:
https://www.infonetics.com/pr/2015/Router-Switch-Leadership-Survey.asp

Mixed-Bag Carrier Ethernet Equipment Market Set to Top $29 Billion in 2019:
https://www.infonetics.com/pr/2015/Carrier-Ethernet-Market-Highlights.asp

Virtual Routers on Track to Grow 125% in the Next Year:
https://www.infonetics.com/pr/2015/1Q15-Carrier-Router-Switch-Market.asp

Operators Spent $67B Outsourcing Network Tasks in 2014:
http://www.infonetics.com/pr/2015/Service-Provider-Outsourcing-Highlights.asp

Telecom Carrier Spending Entering New Era Marked by Diverse Regional Trends:
https://www.infonetics.com/pr/2015/2H14-SP-Capex-Rev-Capex-by-Eqpmt-Highlights.asp

RECENT AND UPCOMING RESEARCH
Download the IHS Infonetics 2015 service brochure or log in: www.infonetics.com/login.
– Router & Switch Vendor Leadership: Global Service Provider Survey (June)
– SDN Strategies: Global Service Provider Survey (July)
– Analyst Note: The Ericsson EVR vRouter (Aug.)
– Carrier SDN Hardware, Software & Services Forecast (Aug.)
– Routing, NFV & Packet-Optical Strategies: Global Service Provider Survey (Aug.)
– Ethernet & IP MPLS VPN Services Forecast (Sept.)
– Ethernet Access Devices (EADs) Forecast (Sept.)
– Service Provider Router & Switch Vendor Scorecard (2015)

IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)
– Building Application-Aware Mobile Networks Using SDN & NFV (Sept. 16: Register)
– SDN & NFV: Lessons Learned (Sept. 24: Register)
– SDN & NFV: Accelerating PoCs to Live Commercial Deployment (Watch now)
– Service Provider Experiences with NFV: The Good, Bad & Ugly (Watch now)
– Router Bypass: Using NFV to Deliver Enterprise Services (Sponsor)

TO PURCHASE RESEARCH, CONTACT:
IHS Sales: +1 844-301-7334
https://www.ihs.com/about/contact-us.html

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.