Service providers' ongoing rollout of fiber-based broadband services and future 5G wireless deployments will drive up the worldwide service provider edge router market to $8 billion in revenues by 2020. However, Dell'Oro Group cautions that regional trends will instill market fluctuations through 2016 as the market will return to growth in 2017 due to a variety of demand drivers.
"The market declined in 2015 due to a slowdown in spending in North America combined with weaker results in Asia Pacific and Latin America," said Alam Tamboli, senior analyst for the Dell'Oro Group. "For 2016, macroeconomic issues in several countries will hinder demand."
Tamboli said that despite a near-term slow down this year, growth will resume in 2017 as more service providers North America and Europe expand their fiber broadband rollout. Looking towards the end of the reporting period, Dell'Oro noted that the anticipated roll out of 5G will further the demand for edge routers. Release