SP Switching & Routing Market Tough, Even for Huawei: Subregional View
Huawei and ZTE have emerged as credible competitors in the market for service provider switching and routing (SPSR), accounting for 12% and 3%, respectively, of 2009 revenues. But a subregional analysis makes clear that the SPSR market remains a tough one for Chinese vendors to crack. The gains they have achieved in optical, broadband, and wireless will be hard to replicate. Service providers are now inviting them to the table, however, injecting much-needed competition into a segment with above-average margins and a high concentration of share in a few players’ hands.
Executive summary
In a nutshell
Ovum view
Supply landscape evolving as SPSR market returns to growth
2009 spending fell 17%, but the worst is over
Huawei and Alcatel-Lucent gained most share in 2009
Japanese and Chinese vendors are powerful in their home markets but not as significant elsewhere
Huawei, ZTE, and Samsung biggest overall infrastructure gainers
SPSR market leaders Cisco and Juniper have margins well ahead of most competitors
Subregional results for 2009
Strong reluctance to accept Chinese vendor success
In a nutshell
Ovum view
Supply landscape evolving as SPSR market returns to growth
2009 spending fell 17%, but the worst is over
Huawei and Alcatel-Lucent gained most share in 2009
Japanese and Chinese vendors are powerful in their home markets but not as significant elsewhere
Huawei, ZTE, and Samsung biggest overall infrastructure gainers
SPSR market leaders Cisco and Juniper have margins well ahead of most competitors
Subregional results for 2009
Strong reluctance to accept Chinese vendor success
LIST OF TABLES
Table 1: Vendor shares of SPSR market by region/subregion in 2009
Table 1: Vendor shares of SPSR market by region/subregion in 2009
LIST OF FIGURES
Figure 1: Worldwide service provider switching and routing revenue actuals and forecast, 2002–14
Figure 2: SP switching and routing market share gains and losses, 2009
Figure 3: SPSR vendor share in China/Japan vs. the global market ex-China/Japan for 2009
Figure 4: Change in vendor share from 2008 to 2009, telecom network infrastructure revenues
Figure 5: Operating profit margins for key telecom infrastructure vendors, 2008–09
Figure 1: Worldwide service provider switching and routing revenue actuals and forecast, 2002–14
Figure 2: SP switching and routing market share gains and losses, 2009
Figure 3: SPSR vendor share in China/Japan vs. the global market ex-China/Japan for 2009
Figure 4: Change in vendor share from 2008 to 2009, telecom network infrastructure revenues
Figure 5: Operating profit margins for key telecom infrastructure vendors, 2008–09
