Shift to 100 Gigabit Ethernet to spur service provider core router sales says Dell'Oro

Dell'Oro Group predicts that global service provider core router sales will hit $3.4 billion in 2020. Carrier adoption of 100 Gigabit Ethernet (100GbE) will provide the catalyst for revenue growth, the market research firm states in its newly released "Router & Carrier Ethernet Switch 5-Year Forecast Report."

"In 2015 we began to see a significant increase in deployments of 100GbE ports, driven by the continuous increase in IP traffic as well as the availability of higher-capacity line cards. Pricing declined significantly in 2015 for 100GbE as there was a mix shift in the types of routers on which 100GbE ports were installed," said Alam Tamboli, senior analyst at Dell'Oro Group. "Previously, 100GbE was primarily installed on high-end core routers and now more are being installed on relatively lower-priced edge routers."

The price declines in 100GbE optical modules will prove a significant factor, according to Dell'Oro.

"The availability of advanced optics in CFP2 and CPAK has pushed down pricing on 100GbE. This reduction in pricing will lead to 100GbE selling at a price per bit transmitted below that of 10GbE in the 2018 time frame," Tamboli explained. "Going forward, CFP4 and QSFP28 will lead to denser optics and further price reductions. We expect 100GbE ports to shift from backbone core deployments and into metro core deployments, further driving demand, as the pricing points become less cost-prohibitive."

The "Router & Carrier Ethernet Switch 5-Year Forecast Report" offers tables that illustrate the service provider core, edge, and access/aggregation portions of the IP/MPLS network, as well as separate from tables covering enterprise routers. It includes analysis and statistics on manufacturer revenue, average selling prices, and unit and port shipments by speed.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.