Equipment for IP networks (global market)

Networking Equipment (Global Market)

• Networking Equipment (Global Market)

2012

Third Quarter: Routers Market Still Depressed

The IP router and scroll market in the third quarter of 2012 decreased by 5% to $3.4 billion, especially unsuccessful results were shown by sales of equipment of this class in the EMEA region, according to Infonetics Research^[1]

According to Michael Howard, co-founder and analyst of Infonetics Research, what is happening in the market for communication equipment for IP networks is a direct consequence of the difficult economic conditions in which both vendors and their customers are currently located. This is especially true for the markets of Europe, North America and Latin America.

According to him, in the EMEA region, the IP router and scroll market showed the next negative quarter due to the ongoing financial crisis in Europe. Although the North American economy as a whole is recovering, the revenue of IP routers in North America declined by 2% year-on-year in the third quarter of 2012. In Latin America, the southern part of the mainland and Mexico became the main areas of concentration of negativity.

As for the positions of vendors, separately in the router segment, Cisco retained a leading position in the market, however, Juniper Networks unexpectedly managed to rise immediately to second place, while Huawei went down to fourth place, and Alcatel-Lucent remained on the third line. Cisco, Juniper, Alcatel-Lucent and Huawei together accounted for 88% of all manufacturer revenue in the IP router segment.

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