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December 13, 2004

Cisco Maintains Strong Lead In Enterprise Router Market

Worldwide enterprise router units shipments increased 10 percent and revenue totaled $918 million in 3Q04, down a percent from 2Q04, according to Infonetics Research's Enterprise Routers quarterly worldwide market share and forecast report. Revenue is projected to dip 4 percent to $3.8 billion between 2003 and 2004, and return to the 2003 level of $3.9 billion in 2007, with a 5-year CAGR of -1 percent.

"Cisco continues to dominate the router world quarter over quarter," said Infonetics Research's Matthias Machowinski, directing analyst for enterprise voice and data. "The competition is introducing products up and down the enterprise router categories, offering end-users more choices and features at aggressive prices. Cisco faces the most competition in the low-end/SOHO categories, pressured by the commoditization of low-end routing and more sales channels."

Infonetics projects secure router categories to have slightly higher growth rates than standard router categories through 2007, increasing revenue from a 12 percent portion of the total router market in 2003 to 14 percent in 2007. Over time, more router vendors are likely to add security features into routers as a default offering, at no extra charge, causing the standard enterprise router category to disappear.

3Q04 Market Share Highlights
  • Cisco maintains its strong lead in the total enterprise router market, despite a down quarter, accounting for three-quarters of the worldwide revenue share and almost a fifth of the unit market share.
  • D-Link takes the lead in unit market share; Linksys is close behind, and is second for revenue.
  • NETGEAR is in fourth place for worldwide unit shipments.
  • 48 percent of enterprise router revenue comes from high-end routers, 39 percent from mid-range, 3 percent from low-end/SOHO, and 10 percent from wired broadband gateways.
  • 46 percent of all enterprise router revenue comes from North America, 32 percent from EMEA, 17 percent from Asia Pacific, and 5 percent from CALA.

Enterprise Routers tracks wired broadband gateways and standard and secure high-end, mid-range, and low-end/SOHO routers. Forecasts and market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific and CALA).

Companies tracked in this service include 3Com, ADTRAN, Allied Telesyn, Cisco, D-Link, Enterasys, Huawei, Juniper, Linksys, Lucent, NETGEAR, Nortel, Siemens, Tasman, Vanguard and others.

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