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Switch and router markets set to grow

by on19 March 2012

y analyst

Ovum predicts 6.4 per cent growth

Tarot readers working for the analyst outfit Ovum say that the market for global service provider switching and routing market will hit revenues of  $20.5bn in 2017. Currently this is sitting at $13.3bn in 2010, with a rise of 6.4 per cent over seven years, predicts Ovum.

In a new forecast report, the independent market analyst outfit reveals IP traffic growth is driving strong demand for switches and routers in service provider networks. This growth is expected to accelerate further as fixed and mobile broadband subscriber penetration rates increase and consumer video applications drive ever-growing levels of network traffic.

David Krozier, principal analyst at Ovum said that carriers will need to invest in growing their IP infrastructure or risk losing subscribers. In developing nations, carriers are building out their 3G wireless networks, while developed nations are investing in LTE to accommodate mobile bandwidth demand, he said.

North America was the largest of Ovum's geographical regions in 2011 and the Asia-Pacific region, which contains two of the top three global economies, China and Japan, was a close second.

Ovum forecasts 9.7 per cent growth in the Asia-Pacific market in 2012 and 4.0 per cent growth in North America. The companz expects the Asia-Pacific region to surpass North America as the largest regional market for telecom switches and routers equipment for 2012.

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