Telecom and Cloud Operators To Invest $76 Billion on IP Infrastructure from 2022 through 2026, According To Dell’Oro Group

400 Gbps Technologies Expected to Fuel Service Provider Router Market Growth

According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Service Provider Router and Switch market is projected to generate $76 billion in cumulative revenue over the next five years. The adoption of new 400 Gbps routing technologies is expected to contribute significantly to the overall market growth.

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“The deployments of 400 Gbps routers started last year, but that was just the start of a longer-term upgrade cycle that accelerates in 2022,” said Shin Umeda, Vice President at Dell’Oro Group. “400 Gbps capable routers are addressing a wider range of applications, and the economic improvements offer a compelling investment storyline,” added Umeda.

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Additional highlights from the Service Provider Router and Switch Five Year Forecast Report:

• Routers deployed in 5G mobile infrastructures are projected to drive consistent market growth over the next five years.
• Disaggregated routers are expected to take a larger share of the overall market, but the nascent technologies face an increasingly competitive landscape from incumbent vendors.
• An increasing share of the SP Router and Switch market will go to cloud service providers over the next five years as they upgrade to 400 Gbps technologies and expand network footprints.

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