REDWOOD CITY, Calif. – According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the cumulative revenues spent on Service Provider (SP) Router and Switch equipment are projected to approach $77 billion over the next five years. This represents a 9 percent increase compared to the cumulative revenue of the previous five-year period, propelled largely by a combination of applications driving higher volumes of traffic such as proliferation of 5G on mobile networks, residential broadband shifting to higher speed Cable, and PON, and increased use of video.
Additional highlights from the Service Provider Router and Switch 5-Year July 2023 Forecast Report:
We expect the combined SP Edge Router and Aggregation Switch segment's growth to be propelled by SPs' expansion of mobile backhaul networks followed by broadband expansion. Broadband SP investment in fiber will result in significant traffic increases. Broadband providers will continue upgrading Edge Routers to support faster speeds and lower latency.
Disaggregated Router sales are gaining share, and we anticipate this trend to continue throughout our forecast horizon. Existing Telecom SP projects are progressing, and new use cases are moving from testing to production. Growth is driven by ongoing deployments in the maturing AT&T project as well as by new deployments by Turkcell, the leading mobile operator of Turkey, and KDDI Corporation, a Tier One Japanese telecom operator.
Read the full press release here.
Dell'Oro