Router Market Grows 8.2%, Fueled By
China's Broadband Growth
China's network equipment market has grown steadily in 1H
2008, and routers have reached 3.973 billion Yuan, up 8.2% YOY. Demand for
routers has been driven, ultimately, by China's growth of broadband users,
which has reached 76 million, 9.6 million of which are new users. Also,
broadband usage is gradually becoming the norm in China's business offices.
Aggressive implementation of FTTH by broadband operators,
such as China Telecom and
China Unicom, has driven midrange to high-end
router growth. For China's enterprises, they have also focused more building
and upgrading their networks to support China's burgeoning e-commerce,
online marketing and collaboration applications. This has also supported the
growth of routers, especially for multi-services routers that can integrate VoIP, security, wireless, and VPN, for example.
Vendors have responded. Cisco
launched its ASR 1000 in 1Q08, followed by its video monitoring solutions in
2Q08, which works with its ISR platform. This configuration can realize
physical security, connected video monitoring, and other applications, such
as unified communication, network security, VPN and mobile; and
strengthening Cisco's position in China.
Juniper also launched multi-services routers as
well in China. H3C launched the MSR 20-1X series multi-services routers,
which realized favorable market response in 1H08. These products provided
benefits in Intranet applications, and integrated wireless, security and
In 1H08, Cisco, Huawei, and Juniper are major vendors in
the high-end telecom operator market. H3C and
ZTE round out the top five in
the high-end. Huawei, ASB and ZTE are the major vendors in the midrange to
low-end markets. For Intranet applications, Cisco and H3C were the market
BDCOM focused on specific applications and
industries, and actively pushed to the higher end of the market.
in China in 1H08 continues as it has been for the past two years. Leading
vendors leveraged their technical advantages into higher-end router markets
targeting telecom operators and enterprises. Lower-tier vendors competed on
price, niche markets, and China's more rural Tier 3 and 4 cities. However,
top vendors are moving into the midrange and low-end router markets in
China. Looking towards 2H08, more direct competition will ensue between
leading and second tier vendors, with leading vendors hoping to enlarge
their market share in China.
For more information
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.