The MultiService switch market rebounded in 2004 with worldwide sales of $2.3 bln, an increase of 9% from 2003, reports In-Stat. Sales to service providers accounted for about 90% of total MultiService switch sales in 2004. In-Stat forecasts 7% growth in worldwide MultiService switch sales in 2005, and a CAGR of about 6% over the next five years. The MultiService switch market is mature, and In-Stat expects growth rates in sales to gradually decline over time as the products face stiff competition from routers as service providers evolve to MPLS networks. Nortel held the leading position in sales for the fourth consecutive year, attaining a market share of 34% of total MultiService switch sales.
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