The Service Provider Router & Carrier Ethernet Switch market contracted year-over-year to its lowest level in five years in the first quarter of 2018, according to a recently published report from Dell’Oro Group.
“Over the past two years, the Asia-Pacific region has been a major growth engine for the router market, but in 1Q18, driven in part by saturation in the China telecom market, router demand experienced a sharp decline,” said Shin Umeda, Vice President at Dell’Oro Group. “The weaker China market, combined with price reductions and network architecture evolution in North America, gives us a recipe for a market pull-back in 2018,” added Umeda.
Additional highlights from the 1Q18 Router & Carrier Ethernet Switch Quarterly Report:
- Despite the market’s revenue contraction, 100 Gigabit Ethernet port shipments grew more than 35% year-over-year.
- Cisco was the top ranked vendor in 1Q18, followed by Huawei, Nokia, and Juniper. These four vendors accounted for more than 90 percent of the market revenue in 1Q18.