Cisco storms back in IP Edge market, Huawei posts biggest loss

Volgens Market research firm Infonetics Research is Cisco nu met een marktaandeel van 45% in IP edge router, IP core router, en carrier Ethernet switch (CES) markten.

“Of the top five vendors, only Cisco increased its overall carrier router and switch revenue in the third quarter of 2011, up 3% from the previous quarter to $1.43 billion. Since Alcatel-Lucent, Huawei, Juniper and ZTE all saw double-digit percent declines in their carrier router and switch revenue in the same period, Cisco rises back up to over 40% market share for the first time this year,” notes Michael Howard, principal analyst for carrier networks at Infonetics Research.

Howard adds: “In the critical IP Edge segment (edge routers and carrier Ethernet switches), which now makes up 79% of the carrier router and switch market, Cisco expanded its lead to 36.2% on the strength of its recently refreshed carrier Ethernet switch portfolio and its ASR 9000. Cisco’s share gain is at the expense of its top competitors, particularly Huawei. With Huawei posting the largest sequential drop in IP edge market share in 3Q11, from 17.2% to 12.3%, Cisco’s IP edge share now nearly triples Huawei’s.”


. The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), is down 7.1% sequentially to $3.5 billion, following a 14.3% increase the previous quarter

. Year-over-year, the carrier router and switch market is up 4.5%

. In 3Q11, the IP edge segment (IP edge routers and CES), is down 6.7% sequentially but up 4.3% from the year-ago third quarter

. Top vendors posting gains in the IP edge segment in 3Q11 over 2Q11: Alaxala, Cisco, Ericsson, NEC, and Nokia Siemens

. Regionally, North America lead the downward trend in 3Q11 with the largest decline in carrier router and switch revenue (-15% from 2Q11), despite all the concerns about the Euro zone

o The EMEA and Asia Pacific regions each posted 6% declines, while Central and Latin America (CALA) is the only region that posted an increase, led by Brazil
“The carrier Ethernet equipment market continues to grow strongly, so much so that we’ve increased our long-term forecast from $37.5 billion to $40.2 billion by 2015. Some market segments are growing faster while others are slowing faster than we originally anticipated. The largest downward changes are in the Ethernet microwave and VDSL equipment segments, and the largest upward change is in the hot carrier Ethernet switch segment,” explains Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research.


. Infonetics expects the global carrier Ethernet equipment market to finish 2011 up 15.7% to $32.0 billion, following a 30.5% hike in 2010

. Service provider investment in carrier Ethernet equipment continues to outpace overall telecom capex, which Infonetics expects to be up 6% in 2011

. The carrier Ethernet equipment market is being driven chiefly by the move to packet-based IP next-generation networks and growing consumer, business, and mobile backhaul traffic, particularly video traffic

. The carrier move to packet depends heavily on IP, MPLS, and Ethernet, as operators gradually employ the use of Ethernet transport instead of SONET/SDH

. Mobile backhaul continues to be a particular growth area for carrier Ethernet, with IP/Ethernet equipment expected to make up 95% of all mobile backhaul spending by 2015

. The largest carrier Ethernet investments are in routers, carrier Ethernet switches (CES), and optical gear, which together make up more than two-thirds of the total carrier Ethernet market

. Cisco leads the carrier Ethernet switch market with 45% of global revenue, with no close competitors

. ADVA and Ciena lead the fast-growing global Ethernet access device (EAD) market




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