According to the latest forecast report released by Dell'Oro group, the global sales of service provider (SP) routers are expected to exceed US $75 billion in the five years from 2020 to 2024. The delivery and adoption of 5g and cloud services are expected to drive investment in IP network infrastructure during the forecast period.
"We expect the whole SP router market to grow at a moderate low single digit percentage rate in the next five years, but with the popularity of 5g and cloud services, network use cases such as Mobile Backhaul and backbone transmission will surge respectively." Shin Umeda, vice president of Dell'Oro group. "Vendors with the right hardware and software solutions will benefit from these growth opportunities, but geographic impact will also play an important role in a company's success."
Other highlights of this report include:
·The Asia Pacific region, led by China, is expected to achieve the highest growth in the next five years;
·By 2024, the revenue from 100g and 400g Ethernet technology is expected to account for nearly half of router revenue.
