REDWOOD CITY, Calif., July 27, 2016 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Service Provider Edge Router market is forecast to reach $8 B by 2020. Regional trends will instill market fluctuations through 2016 as the market will return to growth in 2017 due to a variety of demand drivers.
"The Service Provider Edge Router market is in flux," said Alam Tamboli, Senior Analyst at Dell'Oro Group. "The market declined in 2015 due to a slowdown in spending in North America combined with weaker results in Asia Pacific and Latin America. For 2016, macroeconomic issues in several countries will hinder demand. Also, in Mexico, we saw tremendous growth in 2015 due to AT&T's entry into the country. This led to a strong build cycle that will likely be followed by a slowdown in 2016. Growth will resume in 2017 as operators in North America and Europe further their investments in ultra-high speed fixed broadband networks. Furthering the demand for Edge Routers is the anticipated rollout of 5G. We anticipate some mobile operators will start prepping their networks for 5G towards the end of the decade," Tamboli added.