Slowness in China causes 2Q21 service provider router and switch sales swoon: Dell’Oro
Sales of service provider routers and switches were up globally in the second quarter of 2021 – except in China. And that outlier was enough to cause overall sales to slip by low single-digits, according to a recent report from Dell’Oro Group. However, the dip in China isn’t expected to last long, according to the market research firm.
“The demand for routers in China declined in the second quarter as 5G transport buildouts slowed, but we think this was a temporary situation [and] a strong rebound is likely in the second half of the year,” said Shin Umeda, vice president at Dell’Oro Group. “The good news is that revenue from all other regions increased in the second quarter and service provider router spending for the first half of 2021 has climbed above pre-pandemic levels.”
The overall strength of the market for the year can be seen in demand for service provider core routers, which Dell’Oro says will see double-digit growth this year, with adoption of 400-Gbps technologies a driver.
Cisco remained at the top of the market in the second quarter of 2021, with Huawei, Nokia, and Juniper Networks in the next three positions. Dell’Oro notes that supply chain constraints did not significantly affect the market through the first half of this year.
Dell’Oro’s Service Provider Router and Switch Quarterly Report covers the service provider router and switch market from past, present, and future perspectives. The report includes analysis and statistics for manufacturer revenue by regions, customer types, and use cases, average selling prices, and unit and port shipments.
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.
