#United States #Redwood City #Dell'Oro Group #High End Routers #Ethernet Ports

High End Router Market Forecast:

According to the latest report from Dell'Oro Group, a well-respected source in the telecommunication sector, the High End Router market is on track to witness a growth rate of 4 percent CAGR in the upcoming five years. By 2029, the market is expected to reach a staggering $12.7 billion. This growth is largely attributed to the increasing demand for 400 Gbps and 800 Gbps Ethernet port shipments.

Market Insights

Jimmy Yu, the Vice President of Dell'Oro Group, shared insights on the positive long-term outlook for high-end routers, emphasizing that the demand for bandwidth continues to escalate. Although there may be fluctuations in the market, as seen in 2024 when network supply outpaced demand, the overarching trend is an insatiable appetite for more bandwidth. Yu noted that this creates a pressing need for denser and more efficient networks, specifically focusing on routers equipped with 400 Gbps and 800 Gbps ports to tackle future bandwidth demands.

Key Forecast Details

From the publication titled “Service Provider Router and Switch 5-Year January 2025 Forecast,” several key takeaways highlighted the dynamics of the router market:

• - The overall router market, which includes High-End Routers and Aggregation Switches, anticipates a nearly 20 percent decline in 2024. This decline will set a new baseline for future growth starting in 2025.

• - Demand specifically from cloud service providers is predicted to outpace traditional telecom companies, with a remarkable 9 percent CAGR forecasted for direct purchases of High-End Routers. This shift underscores the rising influence and purchasing power of cloud service providers in the technology landscape.

• - The shipments of 400 Gbps and 800 Gbps Ethernet ports are projected to grow significantly at a rate of 30 percent CAGR, accounting for approximately 65 percent of the High-End Router market revenue by 2029.

This information flows from an extensive analysis of the Service Provider Router and Switch market covering current, historical, and forecasted periods, thus offering insight into manufacturing revenue, pricing structures, and customer types within the industry. The report also includes a comprehensive breakdown of unit and port shipments, providing crucial data conducive to strategic decision-making for businesses in this sector.

About Dell'Oro Group

Dell'Oro Group specializes in market research focused on strategic competitive analysis across several verticals, including telecommunications, security, enterprise networks, and data center infrastructure. Their reports offer in-depth quantitative data and qualitative analyses designed to assist businesses in making informed, fact-driven decisions. Interested readers can obtain more details or purchase reports directly via their website at delloro.com or by contacting them at +1.650.622.9400.

With this trajectory, businesses engaged in networking need to gear up for the anticipated demands and embrace the changes as the landscape evolves.