Infonetics: Branch Expansion and Upgrades Expected to Drive Growth in Enterprise Router Market in 2013

Low-end routers made up all the revenue growth in the enterprise router market in 2012 (up 20%), and now represent the largest segment in unit contributions, reports Infonetics Research. (Graphic: Infonetics Research)

BOSTON--()--Market research firm Infonetics Research released excerpts from its 4Q12 and year-end Enterprise Routers market share and forecast report.

ANALYST NOTE

“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,” notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. “However, with the rise in cloud services adoption, we don’t think buyers are on a sustainable path with low-end routers, and we expect them to shift their spending back to branch and mid-range routers. Coupled with general economic growth, this should drive renewed revenue growth in 2013.”

ENTERPRISE ROUTER MARKET HIGHLIGHTS

  • The worldwide enterprise router market totaled $3.5 billion in 2012, down 3% from 2011 — better than 2010 but a long way from the previous market high of $4.3 billion set in 2007
  • On the flip side, unit shipments for enterprise routers grew 5% in 2012
  • Low-end routers made up all the revenue growth in 2012 (up 20%), and now represent the largest segment in unit contributions
  • Mid-range router sales jumped 8% in 4Q12 from the previous quarter, possibly an early indicator of a turning point
  • One piece of good news: ASPs were very steady, falling less than 1% in 2012, and in some cases growing
  • Infonetics forecasts the global enterprise router market to reach $5.0 billion by 2017
  • Though there was a wide range of router vendor performances in 2012, market share changes were very minor; #1 Cisco gained 0.2% share to 71.5% and the top revenue share gainers were Huawei, Yamaha, and NEC

ENTERPRISE ROUTER REPORT SYNOPSIS

Infonetics’ quarterly enterprise router report provides worldwide and regional market size, vendor market share, forecasts through 2017, analysis, and trends for high-end, mid-range, branch office, and low-end/SOHO routers, including revenue and ports. Companies tracked include ADTRAN, Alcatel-Lucent, Cisco, HP, Huawei, Juniper, NEC, OneAccess, Yamaha, and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

UPCOMING MARKET SHARE/FORECAST REPORTS AND SURVEYS

Download Infonetics’ market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at http://www.infonetics.com/login.

UPCOMING INFONETICS WEBINARS

Visit https://www.infonetics.com/infonetics-events to view or register for events, or http://www.infonetics.com/downloads/Infonetics-Webinars-Available-for-Sponsorship.pdf to learn about sponsoring Infonetics events.

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

Contacts

Infonetics Research
Matthias Machowinski, +1-408-583-3363
Directing Analyst, Enterprise Networks and Video
matthias@infonetics.com
Twitter: @infonetics

Release Summary

Market stats, vendor standings and forward-looking expectations from the analyst for the enterprise router market. Focus: 4Q12, calendar year 2012 and future year forecasts.

Contacts

Infonetics Research
Matthias Machowinski, +1-408-583-3363
Directing Analyst, Enterprise Networks and Video
matthias@infonetics.com
Twitter: @infonetics