September 25, 2008
Carrier Ethernet Switch/Router Market Grows 12% Year-Over-Year to $538 Million in 2Q08, Heavy Reading Reports
NEW YORK, Sept. 25 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers (CESRs) rose 1% quarter-over-quarter and 12% year-over-year in the second quarter of 2008 to $538 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker published by Heavy Reading (http://www.heavyreading.com/), the market research division of TechWeb's Light Reading (http://www.lightreading.com/).
"Intensifying competition and macroeconomic weakness have taken some steam out of the hard-charging CESR market, but the fundamental business drivers remain strong and should still fuel market growth of as much as 15% per year through 2012," said Stan Hubbard, Senior Analyst for Heavy Reading and author of the CESR Quarterly Market Tracker. "More than 450 telecom operators and other entities around the world are investing in CESR solutions to support next-generation business, consumer, and cellular/WiMax backhaul services and applications."
"We estimate eight of the 12 revenue-generating CESR vendors covered in the CESR Quarterly Market Tracker posted sequential growth in 2Q08, with No. 2 Alcatel-Lucent, No. 3 Hitachi Cable, and relative newcomer Juniper each recording strong growth and gaining share," said Hubbard. Both Alcatel and Hitachi Cable reported robust sales in Asia, which was the only regional market registering quarter-over-quarter growth in 2Q08.
Heavy Reading estimates that market leader Cisco's CESR sales softened in 2Q08 and left the vendor with a market share just under 50%. Equipment vendors rounding out the top six CESR market-share positions in 2Q08 include: No. 4 Foundry, No. 5 Extreme, and No. 6 Huawei.
"The CESR market is becoming intensely competitive," according to Hubbard. "Our conversations with industry players suggest that, by this time next year, we could see CESR products from as many as 21 different suppliers. This is giving service providers abundant choice in finding solutions tailored for their particular requirements, but it is pressuring vendors to be very strategic in managing research and development, sales, and marketing resources."
Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in CESR sector, including quarter-by-quarter revenue and market share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2012 by region and application. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from other sources. It provides a comprehensive list of more than 265 operators and other entities around the world that have purchased CESR platforms.
The Heavy Reading report analyzes 15 vendors that are now generating sales from CESR products or that plan to roll out CESR products. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Ciena, Cisco Systems, ECI Telecom, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei Technologies, Juniper Networks, MRV Communications, Nokia Siemens Networks, Nortel Networks, and Tejas Networks.
The Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.
For more information, or to receive a free PowerPoint demo of the Carrier Ethernet Switch/Router Quarterly Market Tracker, please contact:
Dave Williams Sales Director, Heavy Reading 858-485-8870 [email protected] Press/analyst contact: Dennis Mendyk Managing Director, Heavy Reading 201-587-2154 [email protected] About Heavy Reading
Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.
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