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Wed 14 Aug 2002 04:00 AM

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Routers en route for growth

The worldwide router market is set to grow over the next five years, according to Dell’Oro Group.

The worldwide router market is set to grow over the next five years, according to Dell’Oro Group. It predicts growth from US$6.8 billion in 2002 to US$6.9 billion in 2003 before hitting US$82 billion in 2006.Dell'Oro Group suggests that the single biggest trend in the router market will be the replacement of the installed base of Routers 9 > X > 1 G/bits/s in service provider networks. The analyst house estimates replacements worth approximately US$4 to US$5 billion will take place over the next seven years. It also predict that sales of >10 G/bits/s routers will remain flat in 2003, before experiencing strong growth in 2004 and beyond, at levels that are higher than the growth rates of worldwide Telecom Capex. "Marginal technology advancement, or increased speed, will generate little to no incentive for users to replace installed equipment. Users will look for extraordinary advances to justify replacing installed equipment, which suggests that users may retain existing equipment for a longer period than they have in the past. Incremental improvements to installed equipment will be more common than replacing a unit with a new one," concludes Tam Dell'Oro, founder of Dell’Oro Group.

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