Market Revenue Declined 33 Percent Year-over-Year in Quarter
REDWOOD CITY, Calif., Aug. 21, 2024 /PRNewswire/ — According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, spending on Service Provider Routers declined sharply in the second quarter of 2024, resulting in a 33 percent year-over-year decline in router equipment revenue.
“The Service Provider Router market contracted for a fourth consecutive quarter due to customers pulling back on spending to lower equipment inventory,” said Jimmy Yu, Vice President at Dell’Oro Group. “The drop in quarterly revenue was one of the worst we have seen in this market for over a decade. The only silver lining to this quarter’s results is that we believe the inventory correction is nearly complete,” added Yu.
Additional highlights from the 2Q 2024 Service Provider Router and Switch Report:
Breaking with historical seasonality where market revenue increases in the second calendar quarter over the first quarter, the Service Provider Router market declined quarter-over-quarter in 2Q 2024. The last time such an event occurred was in 2002.
Among the service provider router technology segments, the steepest decline this quarter was in Core Router. Core Router revenue declined over 50 percent year-over-year.
For the first half of the year, the top three vendors by revenue share were Cisco, Huawei, and Nokia. The only vendors in this market to gain more than one percentage point of revenue share compared to last year were Nokia and Huawei.
About the ReportThe Dell’Oro Group Service Provider Router & Switch Report offers complete, in-depth coverage of the Service Provider Router and Switch market for current, future, and historical periods. The report includes qualitative analysis and detailed statistics for manufacturing revenue by region, customer type, use cases, average selling prices, and unit and port shipments. To purchase this report, 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, security, enterprise network, and data center infrastructure 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 https://www.delloro.com.
SOURCE Dell’Oro Group
