The IP edge router segment dipped 1 percent in 2015 to $14.4 billion, marking what IHS says is the first decline that has taken place in this segment since the telecom crash of 2001. During the fourth quarter of 2015, service provider router and switch revenue rose 8 percent, to $3.7 billion. Likewise, core router upgrades and replacements prompted by the move to 100GE continued to year-over-year uptick in the fourth quarter of 2015.
IHS noted that all three categories -- edge and core routers and carrier Ethernet switches (CES) -- rose sequentially, despite the 1 percent decrease in the overall market for the full-year 2015.
What led to the decline were service providers in China and Japan cutting spending on carrier router and switching equipment. IHS noted that the loss would have even been wider if it were not for other countries like Australia, Korea, Singapore and the Philippines continuing to spend money on routing equipment throughout 2015. Release