#United States #Dell'Oro Group #Redwood City, California #High End Routers #Core Routers

High-End Router Market Growth Analysis

According to a recent report by the Dell'Oro Group, a prominent market research firm specializing in the telecommunications sector, the high-end router market has witnessed notable growth, expanding by 23% year-over-year in the third quarter of 2025. This surge in demand is especially pronounced in Core Router sales, which saw an impressive 68% increase during the same period.

Demand Recovery Across Sectors

Dell'Oro Group's Vice President Jimmy Yu attributed this growth to a general recovery across various regions and customer sectors. He noted that despite last year's challenges, the demand for router equipment is on the rise, with North America leading the charge with a staggering 47% growth rate in the same quarter. Key factors contributing to this growth include increased capacity requirements, data center interconnectivity, cloud integrations, and network modernization efforts driven by advancements in Artificial Intelligence (AI).

Yu humorously remarked that the drivers for this growth were extensive, highlighting that it included almost everything that could contribute positively to the market.

Market Financial Performance

The total market for Service Provider Routers and Switches, which includes high-end routers and aggregation switches, reached a substantial $3.4 billion, marking a 16% growth year-over-year. Interestingly, this growth was largely attributed to all geographical areas except Latin America, underscoring the broader trend of recovery in this tech-driven landscape.

Vendor Landscape

In terms of market share among Core Router vendors, Cisco, Huawei, and HPE Juniper emerged as the top three players in the first nine months of 2025. Cisco, in particular, gained a considerable competitive edge, increasing its market share by five percentage points compared to the previous year. This reinforces Cisco's position as a leader in the high-end router segment, responding effectively to the burgeoning demands of service providers.

Customer Segments and Their Growth

The report also indicated that all customer segments—including communication service providers, cloud firms, and enterprise/public entities—showed positive growth trends both in the quarter and throughout the first nine months of 2025. Notably, while cloud providers led in percentage growth, communication service providers contributed significantly in absolute dollar amounts, which highlights a diverse and robust recovery.

Insights and Conclusions

The findings from the Dell'Oro Group's latest report paint a promising picture for the high-end router market, suggesting ongoing investments and technological innovations will persist as key components driving future growth. The comprehensive coverage of this market, provided through the Dell'Oro Group's Service Provider Router and Switch Report, includes detailed qualitative analyses and quantitative data that will serve businesses keen on understanding this evolving landscape.

For firms interested in more in-depth information and statistics, the Dell'Oro Group offers purchasing options for their reports, which encompass historical data, manufacturing revenues segmented by region, use cases, average selling prices, and shipment quantities.

Overall, the anticipated growth of high-end routers reflects the critical nature of robust networking infrastructure in an increasingly digital world. As businesses invest in modernizing their networks and enhancing capabilities, the router market is set to remain a pivotal area of development in telecommunications.