400G deployments by North American and Caribbean and Latin American (CALA) service providers (SPs) led to double-digit 1Q22 growth in the switch and router market, says the Dell’Oro Group (Redwood City, CA). According to the market research firm’s Service Provider Router and Switch Quarterly Report, the surge offset a flat revenue trend in Europe, Middle East, and Africa (EMEA) and a market decline in the Asia Pacific regions; China’s SP router market grew slightly over the quarter.
“Strong demand for SP routers in North America and the CALA region was driven by the ramping adoption of 400G technologies by cloud SPs and capacity expansions by telecom SPs,” said Ivaylo Peev, senior analyst at Dell’Oro. “Following on the previous year’s developments, major projects in North America were concentrated on network expansions for Internet and cloud backbones, mobile transport, and broadband aggregation. We found that in the CALA region, the strong 1Q 2022 growth reflected investments by telco SPs in Brazil and Mexico, where the expansion of mobile backhaul infrastructure is increasing,” added Peev.
The market also felt the ripples from the conflict between Russia and Ukraine. Notably, key US- and Europe-based vendors exited the Russian and Belarusian markets, suspending all sales and services. These measures caused a negative short-term impact on revenue and weakened vendor performance in the EMEA region.
Meanwhile, growth in the SP core router segment was offset by soft SP edge router segment performance and a decline in the SP aggregation switch segment.
Cisco remained the top-ranked vendor by market share, followed by Huawei, Nokia, and Juniper Networks.
Dell’Oro’s Service Provider Router and Switch Quarterly Report covers the service provider router and switch market for future current and historical periods. The report includes qualitative analysis and detailed statistics for manufacturer revenue by regions, customer types and use cases, average selling prices, and unit and port shipments.
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