The router market will stay in its slump in 2003, according to analyst firm the Dell’Oro Group. On the other hand, Ethernet switch sales will be up over last year.
Dell’Oro said worldwide router sales would decline 2 per cent from 2002 figures, reaching $US6.2 billion this year — the third year in a row the market has shrunk. Expected carrier spending cutbacks of between 5 per cent and 10 per cent on wireline equipment was the cause for the slide, Dell’Oro said.
Growth in the market is predicted over the long run, however, as router sales were expected to reach $US7.9 billion by 2007.
Meanwhile, worldwide Ethernet LAN switch sales will grow 3 per cent this year to $US11.7 billion.
Dell'Oro said network expansions at small and midsized businesses would spur this growth over the next several years. It tipped the market would reach $US16 billion by 2007.