Service provider router sales will exceed $75 billion by 2024: report

networking
Dell'Oro Group says 5G and 400G will drive the service provider router market to $75 billion by 2024. (Pixabay)

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.”

Sponsored by Dell Technologies

5 Ways 5G Will Impact Your Life

We are in the fourth industrial revolution. It has the potential to be the largest one yet. How does 5G play into it? In this blog series we discuss ways in which 5G will impact people and business.

RELATED: Cloud and enterprise sectors propel Juniper to year-over-year growth

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.

Suggested Articles

Cisco CEO Chuck Robbins told a Goldman Sachs tech conference audience that customers are "just tapping the brakes" on spending.

Besides 5G, there are plenty of other network developments (and vendors) worth our attention.

A judge issued a preliminary injunction to temporarily block Microsoft from working on the $10 billion JEDI contract after Amazon filed a protest.