According to IDC’s Quarterly Ethernet Switch and Quarterly Router Trackers, the worldwide Ethernet switch market (Layer 2/3) increased 7.8% year-over-year (YoY) to reach US$6.8 billion in revenue in Q1 2019, while, the worldwide total enterprise and service provider (SP) router market revenues grew 8.2% YoY to $3.6 billion in Q1 2019.
“Organisations across the globe are looking to digitally transform themselves in an effort to meet market and competitive needs and improve user experiences,” said Rohit Mehra, vice president, Network Infrastructure, at IDC. “As they do so, enterprises are realising the critical role the network plays in their broader IT transformation initiatives. 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% YoY to 3.6 million. 100Gb revenues grew 59.0% YoY in Q1 2019 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% YoY. 40Gb switches continue to be falling out of favour with revenues declining 21.3% YoY. Lower-speed campus switches, a more mature part of the market, showed moderate growth. 10Gb port shipments rose 8.6% YoY to make up 28.7% of the market’s revenue. 1Gb switches grew 2.9% YoY in port shipments, making up 40.3% of the market’s total revenues.
• Cisco finished Q1 2019 with an 8.3% YoY increase in overall Ethernet switch revenues and market-share of 53.7%.
• Huawei’s Ethernet switch revenue rose 18.9% YoY, achieving an 8.9% market-share, up from 8.1% a year earlier.
• Arista Networks saw Ethernet switch revenues increase 24.0% in Q1 2019, bringing its market-share to 7.5%, up from 6.5% a year earlier. Arista caters to the higher end of Ethernet switch speeds, with 100Gb revenues accounting for 67.6% of its total revenue, indicating the company’s focus on hyperscale and cloud providers.
• HPE’s Ethernet switch revenue declined 5.6% YoY, to a market-share of 5.3%.
• Juniper’s Ethernet switch revenue declined 23.4% in Q1 2019, 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 this 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.”