Operators to spend $76bn on IP Infrastructure by 2026, says Dell’Oro Group

Operators to spend $76bn on IP Infrastructure by 2026, says Dell’Oro Group

Shin Umeda - Dell’Oro Group 16.9.png

400Gbps technologies are expected to drive service provider router market growth, according to a report by Dell’Oro Group.

The report predicts that the global service provider router and switch market is projected to generate $76 billion in revenue over the next five years. The growing adoption of new 400Gbps routing technologies is expected to contribute significantly to the overall market growth.

“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 (pictured), vice president of Dell’Oro Group.

“400Gbps capable routers are addressing a wider range of applications, and the economic improvements offer a compelling investment storyline."

Dell'Oro's Service Provider Router and Switch Five Year Forecast report also found that routers deployed in 5G mobile infrastructures are expected to drive consistent market growth over the next five years.

In addition, disaggregated routers are expected to take a larger share of the overall market, but the emerging technologies will incur an increasingly competitive landscape from incumbent vendors.

While, 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 400Gbps technologies and expand their network footprint.

Earlier this year, Dell’Oro released another report which predicts Open RAN revenues will account for around 15% of the overall 2G-5G RAN market by 2026.

The Asia-Pacific region is dominating the open RAN market, says Dell’Oro, and will play a leading role throughout the forecast period, accounting for more than 40% of total 2021-2026 revenues.

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