IHS reports 19% spike in overall sales, though SDN impacting growth
Despite an expected slowdown in spending due to growing interest in software-defined networking, IHS reports the carrier routing and switching market posted a 19% spike in overall sales during the second quarter compared to the same period last year. That spike resulted in total sales of $3.9 billion.
The research firm said the most recent growth was spread across major geographical regions, with Asia Pacific the only region to post a year-over-year decline in sales falling 16%. Moving forward, IHS said it expects the market to post a 2% compound annual growth rate between 2014 and 2019.
“While the SDN hesitation that we’ve been talking about the past many quarters is still in play in the carrier routing and switching space, core router upgrades and replacements prompted by the move to 100GE contributed to a nice uptick in the second quarter,” said Michael Howard, senior research director for carrier networks at IHS.
As for vendors, IHS found Cisco Systems as the top provider of equipment, followed by Huawei, Juniper and Alcatel-Lucent.
ACG Research recently released its own findings on the carrier routing and switching market, which cited growing consumer demand for fixed and mobile broadband services in driving a 9.2% sequential and 3.1% year-over-year increase in market sales to $3 billion during Q2. ACG found that core routing equipment witnessed an 11.1% sequential and 12.5% year-over-year increase to $638 million, while edge and switching equipment increased 8.7% sequentially and .9% year-over-year to $2.4 billion.
ACG also noted a growing influence of virtualization technologies into the data center market that providers are looking to take advantage of in bolstering their networks in support of data center interconnectivity. The research firm predicts that by 2019 there will be 60% more data centers in the world’s metro areas and data center interconnect volumes will increase by more than 400%.
ACG Research’s list of top vendors included Alcatel-Lucent, Brocade, Cisco, Huawei and Juniper.
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