Enterprise router market revenue dips 3 percent in 2014

Enterprise router market revenue fell 3 percent in 2014, said Infonetics Research, now part of IHS.

The dip in enterprise router market was due to challenging Capex environment at service providers in North America and Europe.

Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, now part of IHS, said: “High-end routers continue to do well, driven by new data center deployments and large enterprise headquarters upgrades, but the mid-range and branch office segments both declined due to a focus on cost reduction and shifting preferences to low-end routers.”

Enterprise router revenue rose 4 percent quarter on quarter and fell 3 percent year on year in Q4 2014 to $974 million.

Enterprise Router Market’s Strong Q4

In Q4 2014, revenue growth was undermined by average selling price (ASP) declines in the branch and mid-range categories.

Asia Pacific was the top-performing region for enterprise routers, with China in typical fashion ending the year with a bang and Japan returning to growth.

Cisco, HP and Brocade are the top enterprise router vendors in 2014.

ZTE’s enterprise router sales more than tripled in 2014 as preferences in China shifted to local vendors; Huawei also ended the year on a high note thanks to end-of-year buying in China

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