Juniper and Alcatel-Lucent Gain Market Share as NFV Shakeup Nears

RENO, NV, February 19, 2014

New Q4 data from Synergy Research Group shows that while total service provider router revenues grew by 1.4% in 2013, both Juniper and Alcatel-Lucent far surpassed the overall market growth rate and gained market share. Juniper in particular had a strong year achieving over 13% growth. Cisco remains the dominant vendor with a 47% of the full-year 2013 market, but its share gradually eroded through the year – from 49% in Q1 to 44% in Q4. For the full year, Alcatel-Lucent was the second ranked vendor with an 18% market share, followed by Juniper with 17%.

In Q4 total service provider router revenues came in at $3.2 billion, a marginal increase on the previous year, while full-year 2013 revenues reached $12.7 billion. Core routers accounted for 19% of Q4 revenues, while edge routers accounted for 62% and Ethernet access-aggregation devices 19%. North America remained the biggest region accounting for 36% of worldwide revenues, while the EMEA region saw the biggest growth and reached record levels.

“We have seen some distinct market share shifts in 2013 and the recent announcements around NFV point to likely further changes in 2014,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “NFV should bring dramatic benefits to the worlds of mobile, video, and cloud, but it will be a question of how quickly operators embrace NFV throughout their networks and which vendors best position themselves to gain share from this transition."