Edge router market forecast to grow 18% by 2006

-- IP service creation, advances in MPLS, and the continued growth of Internet traffic drive demand

16 July 2002 -- The edge router market, one of the few bright spots in the telecommunications equipment sector, is expected to grow by a compound annual growth rate (CAGR) of 18% over the next four years, as service providers plan to introduce new IP services and keep up with 100-200% annual growth in Internet traffic. The Yankee Group forecasts the edge router market to grow from USD1.6bn this year to USD3.2bn in 2006.

"Edge routers have become one of the most strategic network elements in the service provider network," said Mark Bieberich, a senior analyst at Yankee's Communications Network Infrastructure Planning Service.

"As service providers consider new revenue streams to take advantage of their investment at the core, edge routers must enable new service creation, manage traffic economically, and reduce costs at the same time."

The Report 2002 Edge Router Market Analysis explores how edge routers have evolved to meet these requirements, and it analyses the competition, investment activity, market share, and economic drivers in this space. Market segmentation is also examined, as service providers continue to purchase and deploy edge routers in conjunction with other network elements at the edge, namely IP service devices and multiservice edge switches.

Recommendations are given to vendors, service providers, and enterprises. The report is available to clients of Yankee Group's Communications Network Infrastructure Planning Service.