Global sales of enterprise router devices have begun to pick up, largely driven by healthy spending in the secure router segment.
According to market research from Infonetics Research, total router revenue reached $1bn in the first quarter of this year, up eight per cent from the fourth quarter of 2003, while annual revenue is projected to grow 13 per cent between 2003 and 2007.
Neil Osipuk, directing analyst at Infonetics, and lead author of the report, indicated that, while the overall enterprise router market will experience relatively mild growth, the secure router market will increase significantly.
"Cisco continues to lead by a long shot in the secure router space, but it will only take one vendor with extremely disruptive pricing and a little traction to impact the entire market," he said in a statement.
The research found that Cisco dominates the worldwide enterprise router market. The vendor was found to be the revenue market share leader with Linksys (acquired by Cisco but still reporting market position separately) in second place for revenue but first in unit market share.
D-Link took the third place for worldwide revenue market share, followed by Netgear.
Worldwide high-end enterprise router revenue was up slightly, and unit shipments increased 17 per cent from the fourth quarter of 2003. North America saw declines in shipments and revenue while EMEA and Asia Pacific saw double-digit growth.
The study found that mid-range enterprise router revenue increased by a fifth as sales rose in all regions. Particularly strong growth was observed in EMEA, where unit shipments are projected to grow 74 per cent between 2003 and 2007.
In contrast, worldwide low-end and small office/home office enterprise router revenue was down 18 per cent and unit shipments were flat from the fourth quarter of last year.
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