Wireline, mobile 3G, LTE broadband traffic drive router growth, says ACG Research
The ongoing consumer adoption of wireline and wireless broadband services like LTE continues to create more opportunities for router and switching vendors.
According to a new ACG Research report, the total Worldwide Service Provider Carrier Router-Switch market is projected to increase from $11.4 billion in 2014 to $13.8 billion by 2018 (CAGR 5.1 percent).
Leading the segment from a regional perspective is Asia Pacific, which ACG said will rise at a CAGR of 6.3 percent. The growth in Asia Pacific will be driven by service providers "responding to increases in data traffic, big data, virtualization, software-defined networking and machine to machine as well as the unrelenting demand for innovative and intelligent applications and services."
No less impressive will be North America and EMEA, which will grow at a CAGR of 5.1 and 4.5 percent, respectively.
From a technology perspective, ACG forecast that the edge router segment will reach $12.2 billion in 2018, while the core router market will increase to $3.3 billion.
Another factor will be software defined networking (SDN). During this four-year period, ACG said that live SDN deployments in WAN IP and transport solutions "will gain significant traction, and the edge, metro and core domains will each become larger as a percentage of total SP SDN sales than the data centers are by 2018 (including both hardware and software SDN products)."
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