North America leads the global SP router and switch market in Q1 this year, and Cisco ranks first
The global service provider (SP) router and switch market is on a flat trend in the first quarter of 2022, according to a recent report from the optical communications market watch research firm Dell'Oro Group.
Looking at different geographic market regions, the North American market led the market with double-digit revenue growth, followed by the Caribbean and Latin America (CALA) regions, but the European Central Africa (EMEA) region market demand was unchanged from the previous quarter, and the Asia Pacific region demand decreased , offsetting growth in the Americas.
Ivaylo Peev, senior analyst at Dell'Oro Group, said: "The strong demand for SP routers in North America and CALA is mainly driven by the gradual adoption of 400Gbps technology by cloud service providers (Cloud SPs) and the adoption of 400Gbps technology by telecom service providers (Telecom SPs). Driven by network expansion.” Service providers are continuing to increase investment in this area by studying a large number of use cases across a wide range of network segments.
“Following developments in the previous year, major projects in North America focused on network expansion of Internet and cloud backbones, mobile transport networks and broadband aggregation. We found that in the CALA region, strong growth in the first quarter of 2022 mirrored telecom services Active investments by operators in Brazil and Mexico, where expansion of mobile backhaul infrastructure is increasing," added Peev.
Additional highlights from Dell'Oro Group's Q1 2022 SP Routers and Switches report include:
- Strong growth in North America and CALA more than offset a flat revenue trend in Europe, Middle East and Africa (EMEA) and a decline in the Asia Pacific market. The market demand for SP routers in the Chinese market increased slightly.
- Major suppliers in the US and Europe withdrew from the Russian and Belarusian markets, suspending all sales and services in response to Russia's invasion of Ukraine. These measures had a negative short-term impact on EMEA revenue and weakened supplier performance.
- The growth of the SP core router segment is offset by the performance degradation of the soft SP edge router segment and the SP aggregation switch segment.
- Cisco remains the vendor with the highest market share, followed by Huawei, Nokia and Juniper Networks.
According to a report released by Dell'Oro Group in February this year, the global service provider router and switch market is expected to generate cumulative revenue of $76 billion over the next five years. The adoption of new 400Gbps routing technologies is expected to contribute significantly to the overall market growth. At the same time, cloud service providers will capture a larger share of this market.
