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Introduction

The total service provider switching and routing (SPSR) market is expected to grow 3.4% over the next five years to reach nearly $19bn. IoT, 5G, 4K TV, and fiber access demand drive the switching and routing market investment.

Highlights

  • Access switching and routing products will grow at a 10.9% rate through 2022, driven by increased enterprise connections for cloud services, 4G growth, and the start of the highly anticipated 5G buildout.
  • By 2022, more than 50% of all new service provider switches and routers will be directly SDN controlled.
  • The SPSR market hit an all-time high on an annual basis in 1Q17, reaching $15.9bn. The previous high was in 3Q14; both highs were largely driven by 4G and bandwidth growth. The North American market has declined as 4G LTE has matured, while China and India are ramping 4G consumer growth.

Features and Benefits

  • Analyzes the service provider switching and routing market by region to show where the greatest growth will be.
  • Identifies the key technology trends that will lead to growth in the service provider router market.
  • Analyzes 1Q17 market share trends.

Key questions answered

  • What are the key drivers creating growth in the access switching and routing space?
  • What Ethernet port technology is required to support bandwidth growth?

Table of contents

Summary

  • In brief
  • Ovum view

Forecast summary

  • Global SPSR market forecast to reach nearly $19bn in 2022

Results for 1Q17

  • First-quarter sales were down 12% in a normal seasonal drop, but were up 2% year over year

Quarterly market share update

  • Vendor market share growth is driven by Asia-Pacific, specifically China

Long-range market forecast drivers and barriers

  • 5G provides traffic and application growth while NFV and packet white boxes weigh on the market

Service provider switching and routing forecasts

  • Access switching and routing and cloud-ready routers drive growth

Regional forecasts

  • Asia-Pacific region drives growth due to wireless and enterprise

Market trends

  • By 2022, more than 50% of all new service provider switches and routers will be directly SDN controlled

Market scenarios and warning signs

  • SPSR market tailwind is strong but multiple technology options and economic slowdowns could slow the market

Appendix

  • Methodology
  • Further reading
  • Author

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