SP Routing Market Exceeds $4B in 2Q’23

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Emerging Markets and China Drive Significant Quarter over Quarter Market Share Shifts

Incline Village, NV.  Aug. 29, 2023 —  According to a newly released report issued by founding analysts of 650 Group, the Service Provider (SP) Routing market will continue to grow through 2027, led by 400 Gbps and 800 Gbps port growth and continued robust demand for 100 Gbps in Telco, Cable, and Cloud deployments.

650 Group’s latest report indicates that many customers are transitioning to a digestive phase and delaying future orders as the first and second half seasonality in 2023 changes. This is occurring as the supply chain eases and customers digest equipment. The report also shows that the ramps in 400 Gbps Router platforms based on 56 Gbps SERDES, and next-generation 800 Gbps Router platforms based on 112 Gbps SERDES will become significant revenue contributors.  Also, regional trends impacting China, North America, and Europe, where vendor performance remains very different based on the local supply chain, the trade war, and project timing.

“The SP Routing market is going through back-to-back upgrade cycles to 400 Gbps and 800 Gbps as both Cloud and SP demand for bandwidth is driving a rapid pace of innovation,” said Alan Weckel, founding analyst for 650 Group.  “Vendors including Cisco, Juniper, and Nokia all have next-generation 800 Gbps announcements that will help drive adoption in higher speeds and DCI using ZR/ZR+ optics. In 2024, we expect a robust market of 800G ZR/ZR+ modules from Cloud customers to drive DCI bandwidth demands from AI and edge computing.”

About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading-edge market trends and research and prides itself on first-to-market research with over ten research programs focused on SP and Cloud trends. To learn more, visit: http://www.650Group.com