Core Router Market 'About to Revive'

Sales of core routers to service providers have shrunk a little this year but will bounce back strongly next year, according to statistics released earlier this week by Synergy Research Group Inc., a market research company (see Router Market Grows in Q3.)

Synergy says third quarter service provider sales of core routers totalled $333 million, the second consecutive increase after several quarters of decline -- with this year representing a 1.7 percent reduction compared with last year. It forecasts that next year's overall sales will total $1.5 billion, a 19.4 percent increase over 2003.

The market for edge routers is bigger than for core routers and is growing more strongly, according to Synergy. It's heading for growth of 6.8 percent this year, which will result in fourth quarter sales of $489 million. Sales will rise 35.5 percent next year, to an annual total of $2.2 billion.

Broadband aggregation routers, a sub-segment of edge, show the most dramatic increase this year, rising 122.4 percent to $143 million in the fourth quarter, with a more modest rise of 30.3 percent next year to $649 million.

IP services routers represent the smallest, but fastest growing segment; up 4.4 percent this year and increasing 41 percent in the third quarter to £34.5 million. Growth in this segment is lumpy, with sales expected to rise 32.4 percent next year to a total of $146 million, falling 17.9 percent in the fourth quarter.

Following a drop in the third quarter of this year, the average selling price of high-end routers is set to rise steadily in early 2004, with a slight dip at the end of the year. In the long term, Synergy forecasts that the arrival of 40 Gbit/s transmission speeds will drive up the price and keep the money rolling into the market.

— Nicole Willing, Light Reading

BobbyMax 12/4/2012 | 11:13:04 PM
re: Core Router Market 'About to Revive' The projected growth market may rebound a tiny bit. The service provider router market which consists of branch office, enterprise, service provider edge and service provider core routers will shoe some growthby the year 2005.
theipworld 12/4/2012 | 11:13:04 PM
re: Core Router Market 'About to Revive' You state this as fact. Based on what? Just curious if this is opinion since it doesn't sound as such.
Iipoed 12/4/2012 | 11:13:01 PM
re: Core Router Market 'About to Revive' BM-and your point is?
TheVoice 12/4/2012 | 11:12:59 PM
re: Core Router Market 'About to Revive' "some growth by the year 2005"...
Well some old startups won't be able to make it. Their private status lasting more and more longer than usual, will they make it by 2005???
I doubt it, investors won't follow!
morye 12/4/2012 | 11:12:56 PM
re: Core Router Market 'About to Revive' Basically what this says is that Optical Market is a money loosing operation cut between a hundred suppliers and can not even muster a one billion dollar annual revenue.
echo2 12/4/2012 | 11:12:47 PM
re: Core Router Market 'About to Revive' My options are going to make me rich!
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