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Carrier Ethernet Switch/Router Up 14% Year-Over-Year in 2Q10, Will Surpass $2.9 Billion by 2014, Heavy Reading Reports
Sep 30, 2010 (01:09 PM EDT)


Cisco, Alcatel-Lucent, Huawei, and ZTE Lead Competitive Market in 2Q10

NEW YORK, Sept. 30 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers (CESRs) grew 14 percent year-over-year to $513 million in the second quarter of 2010, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by Heavy Reading (www.heavyreading.com), the market research division of TechWeb's Light Reading.

Heavy Reading projects the global CESR market will continue its recovery through the end of 2010 due primarily to indisputable underlying market fundamentals favoring a shift from legacy Sonet/SDH networks toward high-performance carrier Ethernet/MPLS-based networks. The CESR market is expected to have a combined annual growth rate of nearly 10 percent between 2009 and 2014, reaching $2.94 billion at the end of this period.

"The CESR market began rebounding in 4Q09 and has demonstrated staying power in the face of global economic uncertainty since then, but not all regions are firing on all cylinders," said Stan Hubbard, Senior Analyst for Heavy Reading and author of the CESR Quarterly Market Tracker. "While sales were either up or stable year-over-year across all regions in 2Q10, North America is the only region that has experienced consistent quarter-over-quarter growth since the market bottomed in 3Q09. EMEA had a double-digit sequential decline in 2Q10."

Heavy Reading estimates that half of the established revenue-generating CESR vendors posted sequential growth in 2Q10. Vendors making progress include: Alcatel-Lucent, ZTE, Juniper, ECI, and others.

Heavy Reading estimates that CESR market leader Cisco lost 1.5 share points between 1Q10 and 2Q10. The shares for No. 2 Alcatel-Lucent and No. 3 Huawei held steady. No. 4 ZTE gained several share points. Other vendors with notable share include: No. 5 Brocade, No. 6 Extreme, No. 7 Juniper, and No. 8 ECI.

Heavy Reading's CESR Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in CESR sector, including quarter-by-quarter revenue and market-share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2014 by region and application. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from other sources. It includes a comprehensive list of more than 300 operators and other entities around the world that have purchased CESR platforms.

The Heavy Reading report analyzes 21 vendors that are now generating sales from CESR products or could be in a position to roll out CESR products within the next 12 months. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Ciena, Cisco, ECI Telecom, Ericsson, Extreme Networks, Force10 Networks, Foundry Networks, Hitachi Cable, Huawei, IBM, Juniper Networks, Maipu, MRV Communications, Nokia-Siemens, Orckit-Corrigent, Tejas Networks, Telco Systems, Tellabs, and ZTE.

The CESR Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.

For more information, or to receive a PowerPoint demo of the CESR Quarterly Market Tracker, please contact:

Dave Williams

Sales Director, Heavy Reading

858-485-8870

dave.williams@heavyreading.com


Press/analyst contact:

Dennis Mendyk

Managing Director, Heavy Reading

201-587-2154

mendyk@heavyreading.com



About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

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SOURCE Heavy Reading