Worldwide sales of service provider routers and aggregation switches in the third quarter of 2022 rose 5% year-on-year, according to a recent report from Dell’Oro Group. Strong sales in North America and the Caribbean and Latin America (CALA) regions offset declines in Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC), the market research firm states in its latest Service Provider Router and Switch Quarterly Report.
North America was the most significant catalyst for growth, with sales in the region increasing by double digits versus the year-ago quarter. “North America’s continued upward trend in 3Q 2022 was driven by SPs upgrading networks to gain the advantages of 400-Gbps technologies and expanding their networks to accommodate growing traffic. Demand for network capacity continues to increase, driven by 5G, IoT, pervasive video, and other technology trends,” said Ivaylo Peev, senior analyst at Dell’Oro Group.
“From a worldwide perspective, solid revenue growth in the combined SP edge router and aggregation switch segment was partially offset by flat performance in the SP core router segment. The fast-growing adoption of edge routers and line cards based on the newest ASICs, which support 400-Gbps connections and offer the highest available bandwidth, was the key reason for the edge router segment growth in 3Q 2022,” added Peev.
Supply chain constraints eased somewhat during the quarter, according to the report. Cisco and Juniper recorded solid revenue growth within router suppliers, while Huawei and ZTE saw revenues decline. Nokia also saw a decline, but the downturn resulted from the adverse exchange rate from EUR to U.S. dollars.
Dell’Oro's Service Provider Router and Switch Quarterly Report offers complete, in-depth coverage of 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 region, customer type and use cases, average selling price, and unit and port shipments.
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