Cisco SP Routing Market Share Bounces Back Thanks to APAC & EMEA

RENO, NV, November 19, 2014

New Q3 data from Synergy Research Group shows that Cisco’s share of the service provider router and carrier Ethernet market bounced back strongly after an unusually weak Q2, thanks primarily to a strong performance in the EMEA and APAC regions. Cisco gained substantially in both regions enabling it to bring its share of the worldwide market back to over 45%. Alcatel-Lucent also grew its market share in the quarter, while both Huawei and Juniper fell off the pace. Meanwhile total service provider spend on routers and carrier Ethernet remained at near all-time record levels. Q3 service provider router revenues were $3.4 billion, similar to Q3 2013 and down 5% from a record high in Q2. On a rolling annual basis the market grew by 3%. Core routers accounted for 19% of Q3 revenues, while edge routers accounted for 65% and Ethernet access-aggregation devices 16%. North America remained the biggest region accounting for 37% of worldwide revenues, followed by APAC, EMEA and Latin America. On a rolling annualized basis APAC has experienced by far the strongest market growth, having grown 10%.

“Relative to the previous quarter Cisco gained a huge nine percentage points of market share in both EMEA and APAC regions, while maintaining its position in North America” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “NFV is now causing some substantial turbulence in the market, as are some geopolitical headwinds. It bodes well for Cisco that it was able to regain some lost ground in the quarter.”