BOSTON -- Worldwide revenue for service provider routers and switches grew 26% between 2003 and 2004 to $6.1 billion, and is projected to grow to $8.9 billion in 2008, according to Infonetics Research's quarterly worldwide market share and forecast service, Service Provider Routers and Switches. For the quarter, worldwide revenue is up 1% to $1.6 billion between 3Q04 and 4Q04, and is up 16% from 4Q03.

"Growth in the service provider router and switch market is being fueled by IP routers, which in turn are being driven by IP VPN demand and broadband Internet traffic growth," said Infonetics Research's Kevin Mitchell, directing analyst and lead author of the report. "And very soon, several waves of convergence will bring even more traffic to IP networks, including voice, ATM, frame relay, and mobile voice and data, which will support IP router growth well into the future."

"The trend towards IP/MPLS is quite apparent as routers continue to take more of the router and switch dollar share: in 2004 routers made up 66% of the total market, up from 63% in 2003," Mitchell continued. "Through 2008, the router market will continue to grow, while after a few years of growing investments, we expect multiservice switch sales to decline."

4Q04 and 2004 Market Share Highlights

Infonetics Research Inc.