A nearly 50% increase in revenue in China propped up the global service provider router and switch market in the 2nd quarter, according to Market research firm Infonetics Research.
“A nearly 50% increase in revenue in China propped up the global service provider router and switch market in the 2nd quarter,” notes Michael Howard, Infonetics Research’s co-founder and principal analyst for carrier networks. “China was the differentiating factor between a positive worldwide quarter and one that otherwise would have been down.”
Howard adds: “While Cisco has long led the global IP edge and core router market by very comfortable margins (and whose share is steady from this time last year), Alcatel-Lucent, Juniper and Huawei have been fighting it out every quarter for the past year-and-a-half for the next 3 leadership positions. The race tightened considerably in the 1st half of 2012, with Huawei taking the #2 spot in the 2nd quarter.”
The global service provider router and switch market, including carrier Ethernet switches and IP edge and core routers, grew 4% in 2Q12 from the previous quarter, to $3.5 billion.
From the year-ago 2nd quarter, the overall carrier router and switch market is down 9%, as service providers generally remain cautious, particularly in North America and Europe.
Latin America is the only major world region posting an increase in carrier router and switch revenue on a year-over-year basis (up 57% in 2Q12 over 2Q11).
ZTE posted especially strong gains in carrier Ethernet switches (CES) in 2Q12, particularly in China where CESs are being used in major mobile backhaul deployments.