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Global router, switch market up 13 percent in Q4 '03

Posted: 25 Feb 2004 ?? ?Print Version ?Bookmark and Share

Keywords:router? switches? infonetics research?

The worldwide revenue for service provider routers and switches totaled $1.4 billion during the fourth quarter of 2003, up by 13 percent from the third quarter of the same year, and 13 percent from the same quarter of 2003, according to Infonetics Research's quarterly worldwide market share and forecast service, Service Provider Routers and Switches.

The 2003 year ended with two consecutive quarters of 13 percent growth in the service provider router and switch market, dampening the impact of poor performance in 2002 and the first half of 2003: Worldwide revenue for service provider routers and switches totaled $4.8 billion in 2003, down 9 percent from 2002. The decline was led by a 23 percent drop in multiservice switch revenue, as service provider routers grew 2 percent from 2002. The market is expected to reach $8.6 billion in 2007, representing a five-year CAGR of 16 percent.

"Most companies don't expect an improving aggregate capex environment, but they do expect their own revenue to grow by taking market share from other players and through new market expansion, such as to China or mobile wireless," said Infonetics Research's Kevin Mitchell, lead analyst of the report. "This scenario makes for a very competitive market and may lead to intense price competition, Mitchell added.

"The multiservice edge and core switch markets declined in 2003 as sales of legacy switches continued to slide and IP/MPLS took over the reigns as the key investment driver. But in 2004 the market will stabilize and begin to grow again as incumbents prepare for data network convergence and look for cost reductions and greater port density in multiservice switches," continued Mitchell.

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