Cisco telecom service provider router market share dips by 3 points in 2013, says Dell’Oro

Cisco lost three points in telecom service provider router market share in 2013, said Dell’Oro Group.

However, the report said Cisco is still dominating the service provider router market with nearly twice the market share of the second ranked vendor – Juniper Networks.

The number two vendor Juniper Networks recorded double-digit revenue growth stemming from exceptionally strong demand in North America.

Alcatel-Lucent is in the third position and it maintained share as strong growth in Europe and Asia offset a decline in North America.

Chinese telecom network vendor Huawei gained the most share of all vendors due to strong sales in the China market, said Dell’Oro Group.

Dell’Oro Group said Cisco, Juniper Networks, Alcatel-Lucent and Huawei accounted for 94 percent share of telecom service provider router market share in 2013.

Infonetics on service provider router and switch market

Earlier this week, Infonetics Research said Cisco, Huawei, Alcatel-Lucent and Juniper Networks are leading the service provider router and switch revenue market in 2013.

Infonetics Research said Cisco, Huawei, Alcatel-Lucent, and Juniper together took 83 percent of global carrier router and switch revenue.

In 2013, service provider router and switch revenue — including IP edge and core routers and carrier Ethernet switches (CES) rose 2 percent to $14.5 billion.

Service provider router market to almost $9 billion by 2018

Dell’Oro Group in an earlier forecast said investment in routers for mobile backhaul networks will be the primary driver for the Service Provider Edge Router market through 2018. The demand for these routers is expected to propel the worldwide Service Provider Router market to almost $9 billion by 2018.

Dell’Oro Group today said the service provider router market posted a five percent increase in 2013 after contracting in the prior year.

Sales of service provider routers, the devices used to move data across the Internet, rebounded to a record level of $9.7 billion and are expected to accelerate in 2014.

From a regional perspective, the majority of market growth came from Europe and Asia, while demand in North America flattened.

Alam Tamboli, business analyst at Dell’Oro Group, said: “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 2G, 3G and 4G wireless infrastructure market in 2013 reached around $52 billion, said SNS Research. It estimates that these revenues, from macrocell Radio Access Network (RAN) and core network investments will remain flat in 2014. However, the market is expected to decline at a CAGR of 2 percent over the next 6 years, eventually shrinking to $47 billion by the end of 2020.