In-Stat predicts huge router growth

Communications-focused market research firm In-Stat has predicted that edge and core router sales will double by 2009. In-Stat says that demand for VPN services, convergence and triple play will fuel the growth.

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By  Simon Duddy Published  June 23, 2005

Communications-focused market research firm In-Stat has predicted that edge and core router sales will double by 2009. In-Stat says that demand for VPN services, convergence and triple play will fuel the growth. In-Stat says combined edge and core router sales will grow from US$3.8 billion in 2004 to about US$8.4 billion in 2009. Core router sales will grow at a stronger rate than edge router sales over the next five years, according to the firm. Most major carriers plan to migrate from their existing multiple networks for different services to a converged MPLS core network that carries multiple types of traffic such as Layer 2 (Frame Relay, ATM, Ethernet), IP, and voice traffic. This trend will spur sales of core routers. “Multiservice edge routers will be in demand to support both business services and residential triple-play services, and to enable service providers to consolidate multiple edge functions on a single box,” says Henry Goldberg, In-Stat analyst. “High-capacity core routers will carry multiple types of traffic in the backbones of service provider converged MPLS core networks,” he adds. The recent report found that worldwide edge router sales grew by 37% in 2004 from 2003 to US$2.1 billion, while worldwide core router sales grew by 30% in 2004 to US$1.7 billion. Cisco remained the dominant vendor in edge and core router sales in 2004, with Juniper the second-leading vendor in both markets. However, In-Stat says the number of edge router vendors has increased substantially, and this is creating a much more competitive market.

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