Dell’Oro Group just reported that the high-end router market finally saw some positive growth for the first time since mid-2023. In response, Nokia rolled out two new Wi-Fi 7 gateways aimed at providing super-fast broadband for streaming, smart home devices, and security needs.
Analysts attribute a market slowdown at the end of 2024 to excess inventory and tough economic conditions. However, they project that high-end router sales grew by 10% year-on-year in the first quarter of 2025. Strong performance came from all market segments, especially service provider core and edge routers. Every major region contributed to this revenue surge.
Dell’Oro noted that the first quarter surpassed their expectations from three months earlier. They’ve even revised their market outlook for 2025 upward, but they’re keeping a cautious eye on potential US government initiatives that could impact costs and global growth.
In the first quarter of 2025, four companies—Huawei, Cisco, Nokia, and Juniper—each held more than a 10% share of the high-end router market. Huawei led the pack with a substantial 23% revenue growth year-on-year, gaining market share. Cisco, on the other hand, saw its router revenue dip compared to the previous year. However, it did experience growth in its core router sales, thanks to its successful 400Gbps routed optical networking solutions.
Juniper and Nokia also had impressive revenue growth of 16% and 14%, respectively. Nokia’s new Wi-Fi 7 Beacon 4 and 9 gateways are designed to meet the increasing demands of connected homes by providing the multi-gigabit wireless capacity necessary for future devices.
Nokia highlights that as XGS-PON and 25G PON services expand, upgrading Wi-Fi is essential for delivering high speeds to homes. The Beacon 4 and 9 are built to help service providers offer a top-notch, affordable Wi-Fi 7 experience.
The dual-band Beacon 4 achieves speeds of 3.6Gbps, while the tri-band Beacon 9 reaches 9.4Gbps, minimizing slows and buffering. Both models run on Nokia’s Corteca software, which empowers operators to enhance and monetize broadband services.
Alzbeta Fellenbaum from Omdia commented that as homes become more connected, Wi-Fi 7 isn’t just a tech upgrade; it’s essential for keeping up with market demands. She emphasized the importance of making Wi-Fi 7 accessible across various devices while allowing service providers to offer unique premium experiences.
Dirk Verhaegen at Nokia expressed confidence in Wi-Fi 7 as a game-changer for future-ready connected homes. With their new budget-friendly solutions, operators can now deliver multi-gigabit speeds throughout homes, ensuring an exceptional user experience.