Global Ethernet switch market records $6.75bn in revenue in Q3

Global Ethernet switch market records $6.75bn in revenue in Q3

Posted on

The global Ethernet switch market recorded revenues of $6.75 billion (£4.99 billion) in the third quarter of 2017, according to new figures released in December.
 
Research from the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker reveals that there was a year-on-year increase of 7.4 per cent during this same period. 
 
In addition, the worldwide total enterprise and service provider (SP) router market pocketed $3.91 billion in revenue in the third quarter of 2017, marking a year-on-year increase of 9.4 per cent. 
 
When breaking the data down by region, a strong market performance can be seen in the Central and Eastern Europe (CEE) area, achieving 16.6 per cent growth compared to 2016. Within the CEE, the best performers were the Czech Republic (up 47.3 per cent year on year) and Hungary (up 40.2 per cent). 
 
The Asia/Pacific, excluding Japan, (EPeJ) region and Western Europe increased 12.6 per cent and 12.4 per cent, respectively, year on year. Other notable mentions within these two geographical regions include Germany (up 23.2 per cent), China (19.4 per cent), and India (18.2 per cent). 
 
At the other end of the scale, the worst performers included the United Kingdom, achieving just a 3.2 per cent annual growth. The study from IDC attributes this weak progress to the ongoing impact of Brexit and its uncertainty for the country. Meanwhile, Japan was up just 11.4 per cent, while Latin America experienced growth of only 7.7 per cent.
 
Lagging behind the rest is North America, which only achieved a 3.4 per cent, which was still better than the Middle East and Africa (MEA) region, as it actually experienced a year-on-year decline of 1.2 per cent.
"Strong application-related infrastructure and services requirements at the edge and core are continuing to complement significant cloud buildouts, keeping the demand side humming for network infrastructure," said Rohit Mehra, vice president of network infrastructure at IDC. 
 
"In parallel, connecting the edge to the core and cloud requires upgrades to wide area network (WAN) connectivity for which we continue to see increasing demand across enterprises as well as service providers, leveraging the architectural disruptions from areas like software-defined wide-area network (SD-WAN) and mobile backhaul."
 
IDC’s data demonstrates that 100 gigabit (Gb) switch revenue continues to enjoy rapid growth, with adoption by hyperscale and cloud providers accelerating. Shipments reached almost 1.2 million ports in the third quarter of 2017, recording revenues of $608 million. Accounting for 9 per cent of total market revenue, 100Gb has gained 3.6 per cent compared to the second quarter of last year.
 
In addition, 25Gb and 50Gb Ethernet switch products have made significant gains, with shipments surpassing 750,000 ports $85 million in revenue. Combined, the growth in 25Gb, 50Gb and 100Gb shipments have damaged 40Gb growth, seeing it drop by 36.7 per cent year on year. 
 
As the primary connectivity technology for enterprise campus and branch deployments, 1Gb continues to account for the majority of the Ethernet switching market. Port shipments reached 105.9 million, marking growth of 10.6 per cent year on year. Revenue was boosted by 2.4 per cent, with 1Gb accounting for 42.6 per cent of overall revenues. 

 

Read more on Industry News

Nexxia Audio Solutions Joins Comtec Group

Nexxia Audio Solutions, specialist supplier of Audio Visual Accessories joins the Comtec Group.

A unique company providing audio solutions for all requirements, Nexxia cater for home cin...

Netgear unveils high-speed Orbi Wi-Fi technology

Networking specialist Netgear has introduced a new Wi-Fi solution that promises to deliver high-speed connectivity to every part of a home or small office.

Its Orbi system uses Tri-band W...

Resource Hub

Designed to bring you the latest information - industry news, articles, calculators and tools

Visit our Resource Hub

Request Catalogue

Make sure to get a free copy of our latest catalogue featuring our products. Click on the button to receive your copy.

Click Here