Router advances from Cisco, others, drive spending

Enhancements like CRS-3, 100G Ethernet will help market grow 60% in five years: Dell'Oro

The worldwide service provider router market is entering a growth cycle that will see revenue increase by more than 60% over the next five years, according to Dell'Oro Group. After a sharp decline in 2009 driven by the global recession, the router market is experiencing strong demand as service providers increase the capacity of networks to accommodate growth of Internet traffic, the firm states.

Dell'Oro Group forecasts the service provider router market to reach $11.6 billion by 2014. The market stood at about $7.2 billion in 2009, according to Dell'Oro, which projects it to grow to $7.9 billion in 2010.

Reaching $11.6 billion in 2014 represents a compound annual growth rate of 10%.

Recent history shows that service providers invest heavily in IP routers in conjunction with advances in router technologies, according to Dell'Oro. Cisco recently introduced the CRS-3 and Juniper recently unveiled a chipset, available in early 2011, to enable its T series routers to achieve 250Gbps per slot. And they, along with Alcatel-Lucent, also unveiled 100G Ethernet interfaces for their routers.

"We are seeing manufacturers offering unprecedented advancements in capacity and service functionality in their latest router products," said Shin Umeda, vice president of routers research at Dell'Oro, in a statement. "These new capabilities will give service providers the tools to better manage network traffic growth and develop new revenue streams."

For themselves and their vendors.

More from Cisco Subnet:

All of today's Cisco news and blogs

Cisco wants to be the standard

Wendell Odom: Tons of Answers at Networkers

Forget Apple. RIM should fear Cisco's Cius

Why You Can No Longer Afford to Consider Presence an Optional Component

The Next Generation of Routing Architecture

Hands on with the Android tablet "Cius" that Cisco announced at Cisco Live

High Availability, Headless Communists, and Other Random Thoughts from Networkers

Lieberman Cybersecurity Bill Could Change IT Procurement

Like RSS readers? Subscribe to the Cisco Subnet RSS feed

By Jim Duffy on Thu, 08/05/10 - 3:42pm.