Worldwide Market Grew 5 Percent in 3Q 2022

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Update time : 2022-12-07 09:21:23
“North America’s continued upward trend in 3Q22 was driven by SPs upgrading networks to gain the advantages of 400 Gbps technologies and expanding their networks to accommodate growing traffic. Demand for network capacity continues to increase, driven by 5G, IoT, pervasive video, and other technology trends,” said Ivaylo Peev, Senior Analyst at Dell’Oro Group. “From a worldwide perspective, solid revenue growth in the combined SP Edge Router and Aggregation Switch segment was partially offset by flat performance in the SP Core Router segment. The fast-growing adoption of Edge Router and line cards based on the newest ASICs, which support 400 Gbps connections and offer the highest available bandwidth, was the key reason for the Edge Router segment growth in 3Q 2022,” added Peev.

Additional highlights from Dell’Oro Group’s 3Q 2022 Service Provider Router and Switch Report:

High (double-digit) revenue growth in North America and CALA was diminished by declines in Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC).
Market growth was strong in the SP Edge Router and Aggregation Switch segment, while the Core Router segment trended flat.
Supply chain constraints eased somewhat in the quarter, improving access to components and enabling SP Router vendors to work through some of their order backlogs.
Among the top five SP Router Suppliers, Cisco and Juniper recorded solid revenue growth, while Huawei and ZTE declined. Nokia had a strong quarter based on revenue reported in Euros (EUR), but the adverse exchange rate from EUR to U.S. dollars (USD) resulted in a revenue decline in USD.

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