[February 21, 2013]

Infonetics Predicts Resurgence in 2013 for Carrier Router and Switch Market

Market research firm Infonetics Research today released vendor market share and preliminary analysis from its 4th quarter 2012 (4Q12) and year-end Service Provider Routers and Switches report. (Full report published February 25.)

ANALYST NOTE

"The global carrier router and switch market ended 2012 with a small 4% loss, but it could have been worse," notes Michael Howard, Infonetics Research's co-founder and principal analyst for carrier networks. "Significant budget flushes from operators in Europe, China and Latin America buoyed the overall market in the final quarter of the year."

"Looking ahead," Howard adds, "We expect the service provider switch and router market to grow again in 2013. The US economy is in better shape and we are predicting an increase in worldwide carrier capex this year. In EMEA, activity looks good for the Middle East and, to some degree, Africa, and Europe seems to have hit bottom. If our talks with European service providers prove true, then we can expect a slow climb for the IP router and switch market there, albeit from this lower starting point. Operators know they need to spend on their networks or risk becoming uncompetitive."

SERVICE PROVIDER ROUTER AND SWITCH MARKET HIGHLIGHTS

• For all major world regions except North America, the 4^th quarter of 2012 was strong, with global IP edge and core router and carrier Ethernet switch revenue rising to $3.8 billion, up 12% from the previous quarter
• While North America was down a bit sequentially in 4Q12, the region is up 13% from the year-ago 4^th quarter, the highest year-over-year gain of any region
• In 2012, sales of core routers slowed more than edge routers, as the coming move to 100G is making carriers increasingly cautious as they choose the next generation of higher-capacity core routers
• The top 4 manufacturers in the router and carrier Ethernet switch segment stayed in dominant positions in 2012, with #1 Cisco and #2 Huawei holding steady, while Alcatel-Lucent (News - Alert) moved into the #3 spot, bumping Juniper to #4
• In the race for router-only market share, Cisco maintained the top position in 2012, but Huawei (News - Alert) and Alcatel-Lucent boosted their revenue market share following big gains in 4Q12

REPORT SYNOPSIS

Infonetics' (News - Alert) quarterly routers and switches report provides worldwide, regional, China, and Japan market share, market size, forecasts, analysis, and trends for IP edge and core routers and carrier Ethernet switches, including IP edge market analysis by application. Vendors tracked: Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Ericsson, Extreme, Fujitsu (News - Alert), Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens Networks, Tellabs, ZTE, and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

• Latest Infonetics Carrier Routing, Switching & Ethernet research brief: http://bit.ly/157z6aY
• Small cell operators face myriad operational and financial challenges
• Outdoor small cell backhaul a 5-year $5 billion opportunity
• IP router/switch market dips 5% in Q3; Juniper reclaims #2 spot in routers
• Operators spending $5.6B over 5 years on Ethernet access devices; ADVA takes top spot
• Telecom outsourcing, managed services a $76 billion opportunity by 2016

UPCOMING RESEARCH

Download Infonetics' market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at http://www.infonetics.com/login.

• Carrier Ethernet Equipment Market Size & Forecasts
• Core and Edge Router/CES Vendor Leadership: Global Service Provider Survey
• Ethernet Access Devices (EADs) Market Share & Forecasts
• Macrocell Mobile Backhaul Equipment & Services Market Share & Forecasts
• SAN & High Performance Interconnect Equipment Market Share & Forecasts

INFONETICS WEBINARS

Visit https://www.infonetics.com/infonetics-events to learn more or register for Infonetics events.

• 100G Optics: Why Operators Are Upgrading Now, with Cisco, Cyan, Oclaro (Mar. 5)
• Routers and OTN Faceoff (Sponsorships available)
• Routing vs. Ethernet for LTE Backhaul (Sponsorships available)
• Service Provider SDNs: Here to Stay (Sponsorships available)

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (News - Alert) (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' About Us slides at http://bit.ly/QUrbrV.

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