Report: Router market to increase

FRAMINGHAM (02/02/2004) - The worldwide router market will increase 6 percent over the next five years, while optical transport and mobility infrastructure won't see significant growth until 2005, according to Dell'Oro Group Inc. In a set of five-year forecasts, Dell'Oro said the router market will grow from US$6.3 billion in 2003 to $8.6 billion in 2008. The second half of 2003 was the "turning point" for the market, which had experienced declining sales for several years, Dell'Oro says. Telecom service providers and businesses are planning to increase investment in their router networks this year, and Dell'Oro expects this trend to continue for the next five years. The optical transport equipment market will be flat this year, after years of decline, and will return to sales growth in 2005, Dell'Oro says. Optical transport equipment sales will reach $7.3 billion by 2008, the firm predicts, from $6.1 billion in 2003.

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