400G Drove North America's Service Provider Router Market to Double-Digit Growth in 1H22, According to Dell'Oro Group

Worldwide Market Trended Flat Year-over-Year in 2Q 2022

REDWOOD CITY, Calif., Sept. 14, 2022 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, North America led the worldwide Service Provider (SP) Router and Aggregation Switch market with double-digit revenue growth. The region's performance was driven by the ramping of 400 Gbps technology adoption in the ongoing Service Provider Router market refresh cycle. Despite North America's performance, the worldwide SP Router and Aggregation Switch market was flat year-over-year (Y/Y) in 2Q 2022, although revenues were in line with average revenues of the last five years.

"In 2Q 2022, we observed continuing strong demand for SP Routers in North America, driven by the ramping adoption of 400 Gbps technologies across Telecom- and Cloud SPs and an ongoing capacity expansions by the SPs," said Ivaylo Peev, Senior Analyst at Dell'Oro Group. "We see the flat 2Q22 Y/Y global market performance as a positive signal, as market conditions remained difficult in the second quarter. Economic uncertainty, raising inflation, China's zero-COVID-19 policy, and the war in Ukraine are depressing markets in 2022. Adverse foreign exchange rates and the comparison to a strong 1Q 2021 are adding to the factors negatively impacting the performance of the SP Router and Aggregation Switch market," added Peev.

Additional highlights from Dell'Oro Group's 2Q 2022 Service Providr Router and Switch Report:

• Double-digit market growth in North America and moderate growth in the Caribbean and Latin America (CALA) regions were offset by steeply decreasing revenues in Europe, Middle East and Africa (EMEA) and a market decline in Asia Pacific (APAC) and China.
• Positive growth in the SP Core Router and the Aggregation Switch segments was offset by negative performance in the SP Edge Router segment.
• The Enterprise High End Router segment grew strongly in 2Q 2022, recording double-digit growth across all regions except APAC. APAC's total growth was limited due to a decline in China.
• Adverse foreign exchange rates driven by a strengthened US dollar (USD) suppressed market results in large parts of EMEA and APAC regions, as business transactions were negatively impacted by the conversion between local currencies and the USD.

The Dell'Oro Group 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. To purchase these reports, please contact us by email at [email protected].

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise network, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

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SOURCE Dell'Oro Group

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