Ovum: SPSR market to find growth amongst recent falls

Ovum: SPSR market to find growth amongst recent falls

SCA and NA lead the way, with APAC to gain traction as the year progresses

Independent analyst firm, Ovum, predicts that the service provider switching and routing (SPSR) market will experience a turnaround and grow 4.4 per cent in 2012 to $US15.4 billion.

This comes despite the fact that, in the first quarter of the year, SPSR was down 16.4 per cent successively, and 0.2 per cent versus Q1 2011, according to the Market Share Alert: 1Q12 SP Switching and Routing report.

“In Q1 2012, annualised revenue growth paused,” Ovum network infrastructure principal analyst, David Krozier, said. “Declines in the IP/MPLS core and access switch and router segments were nearly balanced out by gains in the IP/MPLS edge and IP/Ethernet product segments.”

Throughout the first quarter, South and Central America (SCA) saw 25 per cent sales growth compared to last year, with North America (NA) producing 13 per cent growth. The Asia-Pacific (APAC) market saw a fall of 0.7 per cent, with EMEA plummeting 18.5 per cent.

Krozier believes that SPSR carrier spending in SCA and NA will maintain pace, with APAC to pick up throughout the year. EMEA will be carried by Eastern Europe and MEA, as Southern Europe continue to face concerns.

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