Inventory Correction Causes High End Router Market Slowdown in Second Half of 2023, According to Dell'Oro Group
REDWOOD CITY, Calif., Feb. 22, 2024 /PRNewswire/ -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the High End Router market declined 8 percent year-over-year in the second half of 2023, following an abrupt surge in equipment deliveries in the first half of the year.
- "Once supply freed up, router manufacturers were able to fulfill backlogged orders at a faster pace, driving High End Router revenue up 12 percent year-over-year in the first half of 2023.
- We believe it may be another two quarters before inventory levels return to normal levels at these service providers," added Yu.
- Additional highlights from the 4Q 2023 Service Provider Router and Switch Report:
The High End Router market reached nearly $13 billion in 2023. - Cisco gained nearly 6 percentage points of market share and was the only vendor to gain market share in the year.