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March 06, 2013
Enterprise Router Market to See Growth in 2013, Says Infonetics Research


By Rory Lidstone, TMCnet Contributing Writer


Infonetics Research (News - Alert) recently released its year-end and fourth quarter 2012 Enterprise Routers market share and forecast report, which predicts a strong 2013 compared to 2012, as companies shift toward branch and mod-range routers.

This shift will be driven largely by the rise in cloud services adoption, along with general economic growth.

“Buyers are resorting to low-end routers at their branches rather than the more typical branch and mid-range routers, which resulted in a revenue decline for 2012,” noted Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, in a statement.

In total, the worldwide enterprise router market hit $3.5 billion in 2012 – a decline of 3 percent compared to 2011, but better than 2010. Still, this figure is still relatively small compared to the previous market high of $4.3 billion in 2007.

Infonetics Research forecasts that this high will be shattered by 2017, however, when the global enterprise router market is expected to hit $5 billion.

Meanwhile, unit shipments of enterprise routers grew 5 percent in 2012, with low-end routers making up all revenue growth, at 20 percent, from the year, to represent the largest segment in terms of unit contributions. But mid-range router sales grew 8 percent in the fourth quarter compared to the third, suggesting the type of growth predicted in the report.

Furthermore, in terms of vendor market share, Cisco stayed on top, gaining a 0.2-percent share to hit 71.5 percent, while the top revenue share gainers were Huawei (News - Alert), Yamaha and NEC.

Infonetics Research also recently released highlights from its fourth quarter 2012 PON, FTTH and DSL Aggregation Equipment and Subscribers report, which include a 6-percent drop in global sales of broadband aggregation equipment for the quarter, to hit $1.56 billion.

In February, the market research firm released excerpts from its Q4 2012 CMTS and Edge QAM Hardware and Subscribers report, which predicts a strong 2013 with CMTS and QAM revenue growth of 20 percent or more.




Edited by Braden Becker



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