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Ethernet Extender - L2-3 Ethernet Switch Market to Hit $28 Billion in 2016
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January 26, 2012

L2-3 Ethernet Switch Market to Hit $28 Billion in 2016

By Anuradha Shukla
TMCnet Contributor


The L2-3 Ethernet Switch market is set to hit $28B in 2016, according to a recent report by Dell' (News - Alert)Oro Group.

The future growth of the L2-3 Ethernet Switch market is set to be driven primarily by sales of Ethernet switches optimized for larger data center deployments. 

Dell'Oro Group 5-year Forecast Report indicates that 10 Gigabit Ethernet in the Ethernet Switch market will comprise the majority of revenue by 2016.

Robust growth in 40 Gigabit Ethernet and 100 Gigabit Ethernet is also expected by 2016. Moreover, the combined technologies are expected to exceed $3B by the end of this period.

"We expect the Ethernet Switch market to experience two significant years of market growth in 2013 and 2014 from the migration of servers towards 10 Gigabit Ethernet," said Alan Weckel, senior director of Dell'Oro Group. "We believe that in 2013, most large enterprises will upgrade to 10 Gigabit Ethernet for server access through a mix of connectivity options ranging from blade servers, SFP+ direct attach and 10G Base-T.”

“We further anticipate that in 2014, small and medium businesses will upgrade to 10 Gigabit Ethernet. Looking towards the second half of the decade, 40 GE and 100 GE switches will be an important growth driver for the Ethernet switch market."

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the Ethernet Switch industry with tables covering manufacturers' revenue, average selling prices, and port/unit shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 40 Gigabit Ethernet, 100 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged).

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Anuradha Shukla is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Juliana Kenny

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