Dell’Oro Group reports 23% growth in High End Router revenue

Dell’Oro Group reports High End Router equipment revenue rose 23 percent year-over-year in 3Q 2025, led by a 68 percent rebound in Core Routers, a development that affects capacity planning and procurement for enterprise and service provider networks.

Market Overview

The total Service Provider Router and Switch market, comprised of High End Routers and Aggregation Switches, grew 16 percent year-over-year to $3.4 billion in 3Q 2025. High End Router equipment revenue rose 23 percent year-over-year in the quarter, driven by a 68 percent increase in Core Routers.

Key Findings

All three customer verticals—communication service provider, cloud provider, and enterprise/public—grew year-over-year in the quarter and the first nine months of 2025. “Demand for router equipment is improving across most regions and all customer verticals we track,” said Jimmy Yu, Vice President at Dell’Oro Group.

Segment or Supplier Performance

For the first nine months of the year, the top three Core Router vendors by revenue share were Cisco, Huawei, and HPE Juniper. Among these vendors, Cisco gained the most market share at 5 percentage points.

Technology or Trend Analysis

“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.

Forecast or Analyst Outlook

Market growth occurred across all geographies except Latin America, with North America posting the largest regional increase at 47 percent year-over-year in 3Q 2025. On a customer basis, cloud providers delivered the highest percentage growth while communication service providers contributed the largest dollar increase in the quarter and the first nine months of 2025.

The report notes recovery in core routing demand, regional variation in growth, and vendor share shifts that inform procurement and capacity planning decisions for network operators. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.