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Edge router market sets steady course in 2002

Revenues in the worldwide edge/aggregation router market are set to increase by 25% in 2002, estimates Infonetics Research. The revenues totalled US$471.6 million for the second quarter of this year.

The edge/aggregation router market is warming up for a battle with IP services routers. According to Infonetics Research, vendors are adding features to edge/aggregation routers, which bring them into direct competition with IP services routers.

“The big story in the edge/aggregation router market is the imminent overlap of edge/aggregation and IP services routers,” says Kevin Mitchell, analyst at Infonetics Research.

“Vendors are adding frewalls, IPSec blades, MPLS-based service capabilities, and more QoS functionality to make edge/aggregation routers more service rich, which is beginning to directly compete with IP services routers. As these products develop into the same breed, competition will get fierce, and not all products — or companies — will survive the battle,” he adds.

However, the edge/aggregation router market is continuing to grow in 2002. Infonetics revealed that the market totalled US$471.6 million in the second quarter of 2002. The research group also expects the total revenues for 2002 to increase by 25% from 2001, reaching US$1.9 billion.

Cisco proved the big winner in Q2, with its revenues increasing by 14% and garnering 67% of the revenue market share.

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