Dell'Oro Group reports high end router revenue rose 23%

Dell'Oro Group reported that High End Router equipment revenue rose 23 percent year-over-year in the third quarter of 2025, and that Core Routers grew 68 percent, a change the release described as a sharp recovery in demand.

The total Service Provider Router and Switch market, which comprised High End Routers and Aggregation Switches, grew 16 percent year-over-year to $3.4 billion in the quarter. Growth occurred across geographies except Latin America, and North America recorded a 47 percent year-over-year increase in 3Q 2025. Communication service provider, cloud provider, and enterprise/public customer verticals each posted year-over-year gains.

The report identified several operational factors linked to the revenue increases, including capacity additions, Data Center Interconnect (DCI), cloud on-ramp, and network modernization for and with Artificial Intelligence (AI). It noted that cloud providers produced the highest percentage growth and that communication service providers contributed the largest dollar increase over the period.

For the first nine months of 2025, the report listed the top three Core Router vendors by revenue share as Cisco, Huawei, and HPE Juniper, and it recorded that Cisco gained five percentage points of market share. The Service Provider Router & Switch Report provided qualitative analysis and detailed statistics for manufacturing revenue by region, customer type, use cases, average selling prices, and unit and port shipments.

“Demand for router equipment is improving across most regions and all customer verticals we track,” said Jimmy Yu, Vice President at Dell'Oro Group. “In the third quarter, growth rates were especially high in North America due to a broad recovery, following a steep contraction the previous year. The reasons for the growth included capacity additions, data center interconnect, cloud on-ramp, and network modernization for and with AI. The growth drivers were pretty much everything but the kitchen sink,” added Yu said.

The report included coverage of current, future, and historical periods.