The worldwide Ethernet switch market (Layer 2/3) recorded $6.8 billion
in revenue in the first quarter of 2019 (1Q19), an increase of 7.8% year
over year. Meanwhile, the worldwide total enterprise and service
provider (SP) router market revenues grew 8.2% year over year 1Q19 to
$3.6 billion. These growth rates are according to results published in
the International Data Corporation (IDC)
Quarterly
Ethernet Switch Tracker and IDC
Quarterly Router Tracker.
Ethernet Switch Market Highlights
From a geographic perspective, the 1Q19 Ethernet switch market had a
strong quarter across the globe. The Asia/Pacific (excluding Japan)
(APeJ) region grew 8.6% year over year. Notable gains in the region
included China, which grew 11.7% year over year, and Taiwan, which
increased 15.3%. Meanwhile, Japan’s Ethernet switch market rose 1.3%.
The Middle East and Africa (MEA) region saw growth of 9.5% year over
year, led by Egypt, which rose 17.3%. Europe saw more modest growth with
Western Europe growing 3.5% and Central and Eastern Europe remaining
stagnant with 0.3% year-over-year growth. Notable markets in Western
Europe included the United Kingdom, which was down 1.2% from a year
earlier, while Germany was up 2.3% and Italy grew 15.5% year over year.
In Central and Eastern Europe, Russia declined 13.4% year over year. In
the Americas, the United States grew 11.9% while Canada increased 2.6%
year over year. Latin America was down 4.5% overall with Brazil’s 8.5%
year-over-year decline offset by 11.0% growth in Mexico.
“Organizations across the globe are looking to digitally transform
themselves in an effort to meet market and competitive needs and improve
user experiences. As they do so, enterprises are realizing the critical
role the network plays in their broader IT transformation initiatives,”
said Rohit
Mehra, vice president, Network
Infrastructure, at IDC. “This has led to continued, and growing,
investment in Ethernet switching, routing, software-defined networks
(SDN), and SD-WAN platforms and architectures that support the
increasing demands of an always-connected world.”
100Gb Ethernet switch revenues continue to grow rapidly. Port shipments
for 100Gb switches rose 85.3% year over year to 3.6 million. 100Gb
revenues grew 59.0% year over year in 1Q19 to $1.2 billion, making up
17.3% of the market’s revenue. 25Gb ports also saw impressive growth,
increasing 133.3% to $304.0 million, with port shipments growing 104.8%
year over year. 40Gb switches continue to be falling out of favor with
revenues declining 21.3% year over year. Lower-speed campus switches, a
more mature part of the market, showed moderate growth. 10Gb port
shipments rose 8.6% year over year to make up 28.7% of the market’s
revenue. 1Gb switches grew 2.9% year over year in port shipments, making
up 40.3% of the market’s total revenues.
Router Market Highlights
The worldwide enterprise and service provider router market grew 8.2% on
a year-over-year basis in 1Q19 with the major service provider segment,
which accounts for 75.3% of revenues, increasing 7.1% and the enterprise
segment of the market growing 11.9%. From a regional perspective, the
combined service provider and enterprise router market increased 12.0%
in APeJ with the enterprise segment up 17.7%. Japan’s total market grew
27.1% year over year. Central and Eastern Europe regional revenues rose
19.7% year over year, while the Western Europe combined enterprise and
service provider market grew 3.7% year over year. The Middle East &
Africa region was up 12.6% fueled by a 15.7% increase in service
provider revenues. In the U.S., the enterprise segment was up 15.7% but
the service provider revenues fell 5.8%, causing the total market to
decline 0.5% year over year. Canada’s market rose 28.5% year over year
and the Latin American market grew 9.0%.
Vendor Highlights
Cisco finished 1Q19 with an 8.3% year-over-year increase in
overall Ethernet switch revenues and market share of 53.7%. In the hotly
contested 25Gb/100Gb segment, Cisco is the market leader with 39.4% of
the market’s revenue. Cisco’s combined service provider and enterprise
router revenue rose 15.3% year over year, with enterprise router revenue
increasing 16.1% and service provider revenues growing 14.8%. Cisco’s
combined SP and enterprise router market share increased to 42.4%, up
from 37.4% in 4Q18.
Huawei’s Ethernet switch revenue rose 18.9% on an annualized
basis, giving the company market share of 8.9%, up from 8.1% a year
earlier. The company’s combined service provider and enterprise router
revenue rose 5.7% year over year with a market share of 24.5%.
Arista Networks saw Ethernet switch revenues increase 24.0% in
1Q19, bringing its share to 7.5% of the total market, up from 6.5% a
year earlier. The company continues to cater to the higher end of
Ethernet switch speeds, with 100Gb revenues accounting for 67.6% of the
company’s total revenue, indicating the company’s focus on hyperscale
and cloud providers.
HPE‘s Ethernet switch revenue declined 5.6% year over year,
giving the company a market share of 5.3%.
Juniper‘s Ethernet switch revenue declined 23.4% in 1Q19,
bringing its market share to 2.6%. Juniper saw an 8.2% decline in
combined enterprise and service provider router sales, bringing its
market share in the router market to 10.4%.
“There continue to be diverging trends across the Ethernet switch
market,” said Petr
Jirovsky, research director, IDC
Networking Trackers. “Hyperscalers and service providers continue to
demand the fastest Ethernet switching speeds in the market, leading to
the highest growth rates in both port shipments and revenues. Meanwhile,
the more mature enterprise switching platforms continue to make up a
larger share of the overall market.”
A graphic illustrating the worldwide revenues for the top 5 Ethernet
switch companies over the previous five quarters is available by viewing this
press release on IDC.com.
The IDC
Quarterly Ethernet Switch Tracker and the IDC
Quarterly Router Tracker provide total market size and vendor shares
for the Ethernet switch and router technologies in an easy-to-use Excel
pivot table format. The geographic coverage for both the Ethernet switch
market and the router market includes eight major regions (USA, Canada,
Latin America, Asia/Pacific (excluding Japan), Japan, Western Europe,
Central and Eastern Europe, and Middle East and Africa) and 60
countries. The Ethernet switch market is further segmented by speed
(100Mb, 1000Mb, 10Gb, 25Gb, 40Gb, 50Gb, 100Gb), product (fixed managed,
fixed unmanaged, modular), and layer (L2, L3, ADC). Measurement for the
Ethernet switch market is provided in vendor revenue, value, and port
shipments. The router market is further split by product (high-end,
mid-range, low-end, SOHO), deployment (service provider, enterprise),
connectivity (core, edge), and the measurements are in vendor revenue,
value, and unit shipments.
For more information about IDC’s Quarterly Ethernet Switch and Router
Trackers, please contact Kathy Nagamine (knagamine@idc.com).
About IDC Trackers
IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC’s Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and online query tools.
About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC’s analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world’s leading media, data and marketing services company. To learn
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190531005488/en/