SP Routing Market at an All-time High while Cisco Share Drops
RENO, NV, August 19, 2014
New Q2 data from Synergy Research Group shows that service provider spend on routers and carrier Ethernet hit an all-time high of $3.5 billion. Cisco remains the dominant vendor in the market but its share of quarterly revenue hit an all-time low of 41%. Cisco revenues were almost unchanged from the previous quarter but were down 4% year-over-year. Meanwhile its three main rivals, Alcatel-Lucent, Huawei and Juniper, all saw strong revenue growth on both a sequential and year-over-year basis.
Q2 service provider router revenues grew 9% year-over-year and were up 17% from the previous quarter – Q1 having experienced the normal cyclical low. On a rolling annual basis the market grew by 5%. Core routers accounted for 19% of Q4 revenues, while edge routers accounted for 66% and Ethernet access-aggregation devices 15%. North America remained the biggest region accounting for 36% of worldwide revenues, but revenues in the region declined 15% year-over-year while EMEA revenues grew strongly and APAC revenues leapt by 40% to reach record levels.
“While the overall trend in Cisco’s market share has been a steady decline, Q2 was surprisingly weak after a relatively strong first quarter” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “It continues to do well in the largest segment, Ethernet services edge, but has been hit hard particularly in the core router and multi-services edge segments. With NFV starting to shake up the SP routing market I expect to see further shifts in market share over the next few quarters.”
About Synergy Research Group
Synergy Research Group, now part of TechInsights, delivers quarterly analyses of global IT and Cloud markets, offering detailed breakouts of vendor revenues and shipments by segment and region. Market shares and forecasts are provided through Synergy Interactive Analysis (SIA™) — the industry's only fully proprietary SaaS platform purpose-built for market share and forecasting analytics.
For more than 25 years, Synergy has been a trusted source of quantitative research and market intelligence across emerging communications and technology sectors. By combining syndicated research with specialized consulting, we deliver actionable intelligence to marketing and strategy executives worldwide.
A trusted source of accurate market data, Synergy is cited by industry leaders as well as leading financial, business, and trade publications such as The Economist, The New York Times, The Wall Street Journal, United States Federal Reserve Board, NPR, Forbes, Bloomberg, Financial Times, Bank of England, Fortune, and The Guardian.
About TechInsights
Regarded as the most trusted source of actionable, in-depth intelligence related to semiconductor innovation and surrounding markets, TechInsights’ content informs decision makers and professionals whose success depends on accurate knowledge of the semiconductor industry—past, present, or future.
Over 650 companies and 100,000 users access the TechInsights Platform, the world’s largest vertically integrated collection of unmatched reverse engineering, teardown, and market analysis in the semiconductor industry. This collection includes detailed circuit analysis, imagery, semiconductor process flows, device teardowns, illustrations, costing and pricing information, forecasts, market analysis, and expert commentary. TechInsights’ customers include the most successful technology companies who rely on TechInsights’ analysis to make informed business, design, and product decisions faster and with greater confidence. For more information, visit www.techinsights.com.
Subscriptions: sales@srgresearch.com
Press inquiries: heather.gallo@techinsights.com