EMEA Router Market Grows 8.4% in 1Q08, says IDC

IDC’s EMEA Router Tracker shows that the router market in EMEA continued to grow in the first quarter of 2008. The enterprise router market grew by 8.4% from $933 million in 4Q07 to $1.01 billion in 1Q08. Compared to 1Q07, the router market achieved a revenue increase of 15% from $879 million to $1.01 billion in 1Q08.

The highest increase in 1Q08 was in the high-end router segment, which IDC defines as enterprise routers with an average sales value (ASV) paid by the end user of above $20,000. High-end router sales went up by 13% from $589 million to $665 million in 1Q08, driven by service providers investing in offering new services such as IP television (IPTV) and video on demand (VoD) to their end customers. On the other hand, the SOHO segment reported the highest decline of 10.3% from $38 million to $34 million in 1Q08. This segment will become increasingly saturated. New sales are mainly related to the replacement of new routers.

Cisco (without Linksys) remains the leading vendor in the EMEA router market, with a 72% market share, ahead of Juniper with 16.3% and Alcatel-Lucent with 7.5%. Compared to 4Q07, Cisco increased its revenue by 8.3% to $728 million, while Juniper had a revenue growth of 14% to $165 million and Alcatel-Lucent increased its revenue by 13.5% to $76 million.

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