Dell’Oro Group says that network operators will spend more than $75 billion over the five years on service provider routers. The support of 5G mobile and cloud services will drive investments in IP networks and routers from 2020 to 2024, the market research firm states in its newly released Router & Carrier Ethernet Switch Five Year Forecast Report.
“We expect the overall SP Router market to grow at modest, low single-digit rates over the next five years, but there are network use cases such as mobile backhaul and backbone transport that will surge due to the uptake of 5G and cloud services, respectively,” explained Shin Umeda, vice president at Dell’Oro. “Vendors with the appropriate hardware and software solutions will benefit from the growth opportunities, but geographic presence will also play a big part in a company’s success.”
Not surprisingly, that geographic component translates into access to the Asian market, particularly China, Dell’Oro says in the report. From a technology perspective, 100 Gigabit Ethernet and 400 Gigabit Ethernet routers will drive almost half of the service provider router spend by 2024. This trend echoes a similar progression expected in data center switches (see “”).
Dell’Oro Group’s Router & Carrier Ethernet Switch Five Year Forecast Report covers the service provider core and edge router, Carrier Ethernet switch, and enterprise router markets for future, current, and historical time periods. The report includes qualitative analysis and statistics for manufacture revenue by regions, customer types, and use cases; average selling prices; and unit and port shipments.