The global High-End Router market returned to year-over-year growth in Q1 2025, ending a prolonged downturn that began in Q3 2023, according to a new report from Dell’Oro Group. Market expansion reached 10% Y/Y, driven by renewed service provider investments across Core and Edge Router segments. All major geographic regions contributed to the surge, signaling a broad-based recovery from previous quarters marked by elevated inventory levels and macroeconomic headwinds.
Huawei, Cisco, Nokia, and Juniper each captured more than 10% market share in the quarter. Huawei led with a 23% Y/Y revenue increase and added 3 percentage points of share. Juniper and Nokia also outpaced the market with 16% and 14% revenue growth, respectively. Cisco remained a top-four vendor but was the only one to report a Y/Y decline in overall router revenue. However, Cisco saw strength in Core Router sales, thanks to its Routed Optical Networking (RON) architecture featuring 400G ZR/ZR+ optics.
Stronger-than-expected Q1 results prompted analysts to raise their full-year 2025 forecast for the high-end router market. Still, elevated uncertainty lingers due to potential economic headwinds tied to U.S. policy shifts that could raise costs or dampen demand.
- High-End Router market grew 10% Y/Y in Q1 2025
- Huawei posted 23% Y/Y growth and gained 3 pts of share
- Juniper (+16%) and Nokia (+14%) also outperformed
- Cisco saw a Y/Y decline in total router revenue but grew Core Router sales Q/Q and Y/Y
- Full-year outlook revised upward, though policy-driven risks remain
