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Telecom and Cloud Operators Expected to Spend More Than $75 Billion on IP Infrastructure Over the Next Five Years

REDWOOD CITY, Calif. – February 4, 2020 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide sales of Service Provider Routers is projected to exceed $75 billion over the five years from 2020 to 2024. The delivery and adoption of 5G and cloud services are expected to drive investments in IP networks over the forecast horizon.

“We expect the overall SP Router market to grow at modest, low single-digit rates over the next five years, but there are network use cases such as mobile backhaul and backbone transport that will surge due to the uptake of 5G and cloud services, respectively,” said Shin Umeda, Vice President at Dell’Oro Group. “Vendors with the appropriate hardware and software solutions will benefit from the growth opportunities, but geographic presence will also play a big part in a company’s success,” added Umeda.

Additional highlights from the Router & Carrier Ethernet Switch Five Year Forecast:

  • The Asia-Pacific region, led by China, is expected to produce the highest growth over the next five years.
  • Revenue from 100 and 400 Gigabit Ethernet technologies is projected to account for almost half of router revenue by 2024.

About the Report

The Dell’Oro Group Router & Carrier Ethernet Switch Five Year Forecast Report offers complete, in-depth coverage of the Service Provider Core and Edge Router, Carrier Ethernet Switch, and Enterprise Router markets for future current and historical time periods. The report includes qualitative analysis and detailed statistics for manufacture revenue by regions, customer types, and use cases, average selling prices, and unit and port shipments. To purchase these reports, please contact us by email at dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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