Higher Speed Ports and Metro Traffic Drives Core Router Market to Reach $3.4 Billion in 2018, Says Dell O'ro

Higher Speed Ports and Metro Traffic Drives Core Router Market to Reach $3.4 Billion in 2018, Says Dell O'ro

Dell'Oro Group, in its latest report release said that the Service Provider Core Router market will be worth USD3.4 billion by 2018. The major factors contributing to the growth in the market, it said, are the higher speed ports and an increase in the metro traffic.

In a statement accompanying the release of the Routers 5-Year Forecast Report, Dell O'ro said that the report covers various details including revenues, selling prices and shipments of the entire Service Provider Router Market, which apart from covering the Core Router segment, also covers the Service Provider Edge market and the Enterprise High End and Access Router market. 

With continued growth in IP traffic demand, many Service Providers are coming closer to exhausting Internet backbone capacity and scalability on their aging core router platforms.  With recently introduced products that meet these higher capacity needs, Service Providers are likely to perform a product upgrade cycle over the next couple of years after comprehensive testing and trials. Furthermore, the growth of traffic in metro area networks is expected to outpace that of traffic in backbone networks due to a shift in IP traffic patterns related to content delivery networks and data centers.  This shift in patterns has caused many Service Providers to install core routers into their metro networks, effectively increasing the total available market to Service Provider Core Routers."

-    Alam Tamboli, Business Analyst, Dell’Oro Group 

Executive Editor of The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Data Innovations 

Tara Neal covers stories on strategies and initiatives in the Digital Telco space, and anchors the 5G and IoT/M2M verticals on the publication. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 20 years experience in technology and business strategy.

Follow her on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at tara.neal@thefastmode.com.

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