REDWOOD CITY, Calif. – February 8, 2016 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Service Provider Core Router market is expected to reach $3.4 billion in revenue in 2020 as 100 GE port shipments spur growth.
“In 2015 we began to see a significant increase in deployments of 100 GE ports, driven by the continuous increase in IP traffic as well as the availability of higher capacity line cards. Pricing declined significantly in 2015 for 100 GE as there was a mix shift in the types of routers on which 100 GE ports were installed,” said Alam Tamboli, Senior Analyst at Dell’Oro Group. “Previously, 100 GE was primarily installed on high-end core routers and now more are being installed on relatively lower-priced edge routers. Furthermore, the availability of advanced optics in CFP2 and CPAK has pushed down pricing on 100 GE. This reduction in pricing will lead to 100 GE selling at a price per bit transmitted below that of 10 GE in the 2018 time frame. Going forward, CFP4 and QSFP28 will lead to denser optics and further price reductions. We expect 100 GE ports to shift from backbone core deployments and into metro core deployments, further driving demand, as the pricing points become less cost prohibitive,” Tamboli added.
The Dell’Oro Group Router & Carrier Ethernet Switch 5-Year Forecast Report provides a complete overview of the Router & Carrier Ethernet Switch markets. Tables portray the Service Provider Core, Edge, and Access/Aggregation portions of the IP/MPLS network separate from tables covering Enterprise Routers. The report includes qualitative analysis and detailed statistics on manufacturer revenue, average selling prices and unit and port shipments by speed. To purchase this report, please call Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com
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