Router Sales Rocket To $2.5 Billion In Second Quarter: Study

A newly published report by the Dell'Oro Group shows that the router market had the highest quarter-over-quarter growth rate in more than four years.

Worldwide sales of routers grew to $2.5 billion in the second quarter of 2005, an 8% growth from earlier in the year. New products fueled router demand and spurred the dramatic growth. At the high end of the router market, where systems can sell for millions of dollars each, sales grew 15%. At the low-end, where devices sell for as little as $500, sales grew by an equally impressive 14%.

According to a statement by Shin Umeda, Principal Analyst of Router research at Dell'Oro Group, "Telecommunications service providers are investing heavily on new high-end router technologies to transform their network architectures. At the same time, businesses are purchasing low-end routers at record rates to take advantage of the performance and feature improvements of the latest products."