China was a source and benefactor of growth in recent sales in several communications markets, said market watchers at Dell'Oro Group.
Going forward, a confluence of factors, including new product introductions and improvements in technology, may continue to drive growth in the core routers.
Cisco is making its 400 gig-per-slot capacity CRS-X available for trials in the second half of 2013. Juniper has introduced its multi-chassis TX Matrix Plus which allows a customer to connect up to four T4000s via a central switch fabric. Huawei recently began selling its 400 gig-per-slot NE5000E core router, and is hoping to have its 1 terabit-per-slot router available for trials in 2014.
A pipeline of new products could keep core routers growing.
The total access market was flat year-over-year (see below). Double-digit growth in the Passive Optical Network (PON) segment was offset by declines in both DSL as well as Cable. GPON led the PON growth with a record quarter and 37 percent year-over-year growth.
Traditionally, China has accounted for the majority of GPON deployments due to government mandates and stimulus programs that encourage broadband deployments. In the second quarter of 2013, the Chinese market continued to dominate GPON deployments, but deployment rates into other countries have also begun to grow considerably.
Huawei continued to be the largest GPON vendor, largely due to its exposure to the Chinese market. Alcatel-Lucent and ZTE were nearly tied in their market share at a distant second and third. Outside of China, this market share picture changes as Huawei's dominance in the world outside of China is lessened by Alcatel-Lucent's strength.