According to Dell'Oro Group, the worldwide sales of service provider routers is projected to exceed $75 billion from this year to 2024.
Over that timeframe, large-scale deployments of 5G services and applications and cloud services are expected to drive investments in IP networks.
“We expect the overall service provider router market to grow at modest, low single-digit rates over the next five years, but there are network use cases such as mobile backhaul and backbone transport that will surge due to the uptake of 5G and cloud services, respectively,” said Shin Umeda, vice president at Dell’Oro Group, in a statement.. “Vendors with the appropriate hardware and software solutions will benefit from the growth opportunities, but geographic presence will also play a big part in a company’s success.”
Dell'Oro Group also said that revenue from 100G and 400G Gigabit Ethernet Services were projected to account for almost half of the router revenue by 2024. While vendors such as Cisco and Juniper Networks were hoping last year that 400G would start to ramp up this year, its looking like large scale adoption of 400G gear won't happen until 2021.
On a regional basis, Asia-Pacific, led by China, is expected to have the highest router growth over the forecast period.