Story image

Worldwide Ethernet switch market on the rise with US$6 billion revenue

The worldwide Ethernet switch market recorded $6.29 billion in revenue in the first quarter of 2018 (1Q18), a healthy increase of 10.9% year over year. 

Meanwhile, the worldwide total enterprise and service provider (SP) router market recorded $3.31 billion in revenue in 1Q18, a 1.4% decrease on a year-over-year basis. 

These growth rates are according to results published in the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker.

From a geographic perspective, the 1Q18 Ethernet switch market recorded its strongest growth in the Asia/Pacific (excluding Japan) (APeJ) region, which increased a solid 21.0% year over year. 

At a country level, the People's Republic of China (PRC), the largest market in APeJ, had the region's most robust growth, rising 29.7% year over year to $769.8 million; Korea also posted strong 24.2% year-over-year growth. Central and Eastern Europe (CEE) was another standout region, growing 19.5%, with Poland up a strong 39.6% and the region's largest market, Russia, up 19.2%. The Middle East & Africa (MEA) region recorded 11.7% growth, while the United States, the world's largest market, was up 7.0% year over year to $2.44 billion. 

The Latin America (LA) region's growth continued to lag, up only 1.2%. Japan, meanwhile, dropped 2.0% year over year.

The Ethernet switch market's 10.9% growth in 1Q18 is a strong uptick from the 3.5% growth recorded year over year between 1Q16 and 1Q17. The quarter's growth also outpaced the full year 2017 growth of 5.5%, which bodes well for the market's future outlook.

10Gb Ethernet switch revenue increased 5.1%, coming in at $2.05 billion, while 10Gb Ethernet port shipments rose 41.6%. 

40Gb Ethernet revenues were down 4.0% despite port shipments increasing 7.8%, reflecting ongoing price erosion in the market and unfavourable price performance ratios relative to 25Gb and 100Gb products. 25Gb revenue increased 176% year over year with port shipments growing 359% year over year in 1Q18. 100Gb revenue increased 83.8% year over year to $742.5 million and port shipments grew 117.7% year over year in 1Q18. 

1Gb Ethernet revenues were up 5.4% in the quarter, with port shipments up 15.8%, which reverses a trend from last year and shows the interest in refreshing campus and branch networks. Overall, across all speeds, port shipments in 1Q18 rose 12.0% year over year.

The worldwide enterprise and service provider router market contracted 1.4% on a year-over-year basis in 1Q18 with a decrease of 2.7% in the enterprise segment and a decrease of 0.9% in the larger service provider routing market. 

The router market, traditionally the most volatile across the networking domain, has been impacted by the emergence of software-defined architectures that have taken hold across the WAN, with SD-WAN and network virtualization disrupting traditional routing architectures.

The combined enterprise and service provider router market saw a varied regional performance in 1Q18. The APeJ region again significantly outperformed all other regions with its 13.3% year-over-year growth. 

Western Europe rose 2.6%, MEA grew 2.1%, and LA increased 1.3%. Other regions all declined on an annual basis. Japan's market contracted a significant 35.5% year over year while the U.S. market was down 11.4% year over year.

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.