Monday, February 4, 2013

Dell'Oro: Service Provider Router Market Growth to Fall Under 5% by 2017

The market for Service Provider routers will transition to lower growth below 5% by 2017, according to a newly published report by Dell'Oro Group.  The market is forecast to mature as Service Providers reduce their router investments in the coming years as network traffic growth slows, equipment prices shrink, and networks are more efficiently provisioned.

"In the recent past, it was common for the Service Provider Router market to grow annually by 20 percent or more as network operators allocated larger portions of their capital expenditures to routers to support Internet traffic growth.  In stark contrast, we forecast annual market growth to remain below ten percent from 2012-2017," said Shin Umeda, Vice President at Dell'Oro Group.

 "Service Providers will need to take advantage of new products and network architectures, and improve operating processes to make their networks more efficient and obtain the most return on their investment," added Umeda.