Mobile backhaul demands to drive router market beyond $11.5B market by 2019

As more wireless operators need more backhaul options to support higher speed LTE and the eventual migration to 5G, they are creating a sizeable market for the routing vendor community.

According to a new Dell'Oro Group report, the service provider router market is forecast to exceed $11.5 billion by 2019. In particular, wireless operators are expected to deploy more core routers that offer higher density at a lower cost to crease their backbone.

Alam Tamboli, senior analyst at Dell'Oro Group, said the majority of this growth will come in Asia and Europe, two regions where wireless operators are going to "invest heavily in their LTE mobile networks and associated routers as they compete for subscribers."

For core routers, operators will evaluate recently introduced platforms that offer much higher capacity than the previous generations, Tamboli said. "Today, some core router platforms offer ten-fold the capacity per rack versus what was available just five years ago. Operators are expected to upgrade their core router platforms to significantly increase their backbone capacity at a much lower cost per bit transmitted."

For more:
- see the release

Related articles:
Dell'Oro: Core revenue router market to rise to $3.4B in2018
Wireline, mobile 3G, LTE broadband traffic drive router growth, says ACG Research
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