SOUTH SAN FRANCISCO, Calif. -- New forecast data released by telecom market research firm RHK Inc. shows edge IP aggregation routers as the primary growth segment in the switching and routing market over the next three years. In its new report, RHK projects that the North American market for switching and routing will to decline by 11% from $7.8 billion in 2000 to $6.9 billion in 2001. Despite the decline, edge IP aggregation routers are predicted to maintain positive growth, reaching $2.4 billion in 2001.RHK's Switching & Routing Forecast Report includes shipments for core IP routers and ATM multi-service switches, edge IP aggregation routers, session management systems, and service creation systems. The forecast does not include enterprise management systems. The report details a number of factors that have contributed to the downturn in the market. Service provider bankruptcies and consolidation, reduced IT spending, and over production by system vendors have led to excess inventories and increased pricing pressure. Additionally, Capex reductions shifted carriers' priorities from new network deployment to maximum utilization of existing assets. "Another contributor to the decline is the decreased rate of growth in Internet traffic," remarks Rosalyn Roseboro, Senior Analyst, Switching and Routing. "While the amount of Internet traffic continues to grow, the rate of growth has slowed down, leaving newly installed equipment underutilized."RHK Inc.