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Ethernet Switch Market Shows Solid Growth

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Ethernet Switch Market Shows Solid Growth

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October 25, 2017
By Paula Bernier
Executive Editor, TMC

The Ethernet switch market continued to grow at a respectable pace – and so did the enterprise and service provider router market, although at a slightly slower rate – in the second quarter of this year, according to IDC (News - Alert).


IDC Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker report indicates the Ethernet switch market saw $6.43 billion sales worldwide in the second quarter of 2017. That’s 7.8 percent year-over-year gain.

Both the Middle East and Africa, and the Asia Pacific excluding Japan saw increases of 16.8 percent year over year for the quarter. Meanwhile, Israel was up 85.2 percent, Vietnam saw an increase of 38.8 percent, and there was good growth in various parts of Europe, IDC says. As for the U.S., growth here in the Ethernet switch space was 5 percent growth, while North America as a whole saw 4.9 percent year over year growth.

The worldwide enterprise and service provider router market saw $3.92 billion revenue in second quarter. This was a 6.7 percent year-over-year increase.

IDC’s Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker reports also noted the following trends:

• a sixfold increase of 100GbE shipments;

• rapid adoption of 25 gigabit Ethernet top-of-rack switches for cloud and hyperscale data centers;

• a 4.3 percent increase over previous year of 10GbE switch revenue, reaching $2.24 billion;

• 13.6 percent growth in 1 GbE port shipments; and

• a 7.1 percent decrease in enterprise router sales in light of the move to software-defined networking.

Cisco’s (News - Alert) Ethernet switch market share dropped from 55.1 percent to 54.7 percent in the second quarter, according to IDC. The supplier’s combined service provider and enterprise router revenue also decreased 1.9 percent on an annualized basis, and its market share was 41.2 percent in the second quarter, down from 43.9 percent in 1Q17 and 44.8 percent in 2the second quarter of 2016, IDC said.

But there was some good news for Cisco. “In the vigorously contested 10GbE segment,” IDC reported, “Cisco held 51.8 percent of the market in 2Q17, up from 51.4 percent in the previous quarter.”

Meanwhile, Arista Networks, Huawei (News - Alert), and Juniper Networks had good performance in the Ethernet switching category. In fact, Juniper experienced 33.2 percent growth in second quarter for Ethernet switch, IDC says.




Edited by Mandi Nowitz

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