Telecom Lead India: The service provider switching and
routing (SPSR) market is expected to grow 4.4 percent to $15.4 billion in 2012.
Ovum said global SPSR revenue was down 16.4 percent and
down 0.2 percent versus 1Q11.
In 1Q12, annualized revenue growth paused. Declines in
the IP/MPLS core and access switch and router segments were nearly balanced out
by gains in the IP/MPLS edge and IP/Ethernet product segments,” said David
Krozier, principal analyst, network infrastructure, Ovum.
The strongest performance in 1Q12 was in the smallest
geographic segment, South & Central America (SCA), with sales up 25 percent
from the year-ago quarter.
North America (NA) reported 13 percent growth.
The Asia-Pacific market declined 0.7 percent.
The EMEA markets fell sharply by 18.5 percent.
Regional differences were significant and had a major
impact on vendor performance. Indeed, vendors with significant exposure in
South & Central America and North America benefited in 1Q12 as those
markets both grew by double digits.
Alcatel-Lucent turned in a particularly strong
performance in South & Central America in the quarter.
Cisco produced record revenues in North America, and both
vendors managed double-digit revenue growth in the Asia-Pacific region to
outpace global growth.
SPSR carrier spending in NA and SCA will remain healthy,
and the Asia-Pacific market will pick up as 2012 progresses. While the Southern
European economies are a concern, Eastern Europe and MEA provide reasons for
optimism in carrier spending in the EMEA region.
Asian Pacific telecom operator switching and routing revenue to
grow by 9.7% in 2012
Recently, Ovum said the service provider switching and
routing (SPSR) market revenue will grow by 9.7 percent in the Asia-Pacific
market in 2012.
In terms of revenues in Asia-Pacific, the edge router
segment is leading the way, reaching $4.2 billion in 2017, while the core
router segment will touch $1.6 billion and the IP/Ethernet router segment will
reach $1.4 billion. The edge router plays a key role in carrier networks as the
control point for delivering subscriber services.
The global service provider switching and routing (SPSR)
market revenue will touch $20.5 billion in 2017 from $13.3 billion in 2010,
with a CAGR of 6.4 percent.
The strong IP traffic growth is primarily driving demand
for switches and routers in service provider networks. The growth is likely to
increase further as fixed and mobile broadband subscriber penetration rates
increase. Increase in consumer video applications will also fuel the growth.
Top 5 vendors in service provider routers and switches market
based on market share
According to Infonetics Research, the carrier router and
switch market achieved $14.5 billion revenue in 2011, up 8 percent over 2010.
Cisco, Alcatel-Lucent, Huawei, Juniper and ZTE are the top five vendors in the
market.
editor@telecomlead.com
