Gartner Says Worldwide Service Provider Router Revenue Increased 19 Percent in the Third Quarter of 2003
STAMFORD, Conn., November 13, 2003 — The worldwide service provider router (SPR) market totaled $541 million in revenue in the third quarter of 2003, a 19 percent increase from the second quarter of 2003, according to Gartner, Inc. This is the second consecutive quarter of positive growth since the beginning of 2002. which gives reason for optimism that the SPR market will enjoy sustained growth in 2004.
"This extended upturn has increased optimism that the SPR market will enjoy sustained growth in 2004," said Jennifer Liscom, principal analyst for Gartner's Worldwide Telecommunications and Networking group. "Cisco experienced another strong quarter as orders from service providers were stronger than expected in the United States. Juniper also showed solid results buoyed by strong sales in the core."
Cisco Systems continued to lead the worldwide SPR market in the third quarter of 2003, claiming 55.2 percent of worldwide SPR revenue (see Table 1) and 51.4 percent of shipments (see Table 2). Nortel solidified its position in third place with 39 percent growth.
Table 1
Worldwide Service Provider Router Vendor Revenue Estimates for 3Q03
(Millions of Dollars)
Vendor
3Q03 Vendor Revenue
3Q03 Market Share (%)
Cisco
298.6
55.2
Juniper
143.0
26.4
Nortel
28.6
5.3
Redback
21.6
4.0
Others
49.2
9.1
Total
541.0
100.0
Source: Gartner Dataquest (November 2003)
"Core SPRs drove the growth in the overall market in the third quarter of 2003," Liscom said. "Cisco and Juniper both saw over 20 percent revenue growth in this segment, and their strong unit shipments in this segment helped both companies maintain their top positions in the overall market."
Table 2
Worldwide Service Provider Router Vendors' Shipments Estimates for 3Q03
(Units)
Vendor
3Q03 Shipments
3Q03 Market Share (%)
Cisco
1,954
51.4
Juniper
1,135
29.9
Redback
179
4.7
Nortel
177
4.7
Others
357
9.1
Total
3,802
100.0
Source: Gartner Dataquest (November 2003)
Gartner defines SPRs as carrier-class routers capable of providing multigigabit bandwidth in support of high-speed, wide-area network (WAN) interfaces. These carrier-class devices are typically designed for installation in network infrastructure and support the Internet Protocol suite.
Additional market information for the SPR market is available in the Gartner Dataquest Market Statistics report Service Provider Router Market Shares: Worldwide, 3Q03. This report provides a breakout by region and function, and can be purchased on Gartner's Web site.
This analysis is provided by Gartner's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Public Network Infrastructure Equipment Focus Area at http://www3.gartner.com/research/focus_areas/asset_48266.jsp. To purchase a report or subscribe to Gartner programs, call 408-468-8000 or go to www.gartner.com.
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