|[May 30, 2014]
IDC's Worldwide Quarterly Ethernet Switch and Router Tracker Shows Low Growth in Both Markets in the First Quarter
FRAMINGHAM, Mass. --(Business Wire)--
The worldwide Ethernet switch market (Layer 2/3) reached $5.2 billion in
the first quarter of 2014 (1Q14), representing year-over-year growth of
0.4% and a significant seasonal decline of -12.3% quarter over quarter.
Meanwhile, the worldwide router market fared somewhat better, growing
2.3% year over year. Sequentially, the router market also decreased
-12.5%, according to the preliminary results published in the
International Data Corporation (IDC)
Quarterly Ethernet Switch and Router Tracker.
From a geographic perspective, the Ethernet switch market saw its
highest growth in Latin America (up 11.4% year over year), relatively
good performance in Asia/Pacific (up 1.9% year over year), and annual
declines in both Europe, Middle East & Africa (EMEA) (down -0.5% year
over year) and in North America (down -1.2% year over year).
"The worldwide Ethernet switch market continues to see different trends
across market segments with datacenter deployments seeing growth in
spite of the ongoing market transition while the enterprise campus
segment is essentially flat lining or seeing slight declines depending
on the segment or geography involved," said Rohit
Mehra, Vice President, Network
Infrastructure at IDC (News - Alert). "10GbE and 40GbE switch ports for the
datacenter and campus core remain the growth engine for this market,
although we do expect the GbE market to hold its own with port shipments
during the coming years."
10Gb Ethernet switch (Layer 2/3) revenue increased 8.1% year over year
to $2.0 billion while 10Gb Ethernet switch port shipments grew a strong
25.7% year over year to 4.9 million ports in 1Q14. 40Gb Ethernet is
starting to reach critical mass as a stand-alone segment and now
accounts for more than $250 million per quarter in revenue. 10Gb and
40Gb Ethernet continues to be the primary driver of the overall Ethernet
The worldwide enterprise and service provider router market grew 2.2%
year over year in 1Q14. However, performance of the key segments within
the router market varied widely with the service provider segment
growing 4.2% year over year, whereas the enterprise segment declined
-2.9% year over year. The router market also saw a varied performance on
a regional basis. Asia/Pacific, Latin America, and EMEA all showed solid
growth with 13.8%, 11.1%, and 9.1% year-ver-year increases
respectively. North America, on the other hand, declined -9.4% year over
From a vendor perspective, Cisco's (News - Alert) Ethernet switch (Layer 2/3) revenue
decreased -4.3% year over year in 1Q14 and its market share was 60.4%,
which was slightly down from 61.1% in 4Q13. Cisco's market share in the
fast growing 10GbE market segments was 62.2% in 1Q14. Cisco's service
provider and enterprise router revenue declined -1.8% year over year
HP's Ethernet switch revenue increased 4.6% year over year in 1Q14,
ahead of the overall market growth. HP's market share now stands at 9.2%
in 1Q14, on par with 4Q13, but up from the 8.8% in 1Q13.
Juniper had a strong quarter, having outperformed in both Ethernet
switching and routing in 1Q14. Its router revenue was up 5.4% year over
year and its Ethernet switch revenues saw exceptional strength,
increasing 53.4% year over year.
"With datacenters seeing ever-increasing application workloads, 10Gb and
40Gb Ethernet is the greatest driver of today's Ethernet switch market,"
Jirovsk�, Research Manager in IDC's Networking Trackers Group.
"However, regional variations in the market persist and vendors are
cautioned to take this into account while working on their near- to
mid-term go-to-market strategies."
An interactive graphic showing the relative market shares of the top 5
vendors in the worldwide Layer 2/3 Ethernet switch market over the
previous five quarters is available here.
The chart is intended for public use in online news articles and social
media. Instructions on how to embed this graphic can be found by viewing this
press release on IDC.com.
The IDC's Worldwide
Quarterly Ethernet Switch and Router Tracker provides 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 58 countries. The Ethernet switch market is further
segmented by speed (100Mb, 1000Mb, 10Gb, 40Gb), product (fixed managed,
fixed unmanaged, modular), and layer (L2, L3, L4-7). Measurement for the
Ethernet switch market is provided in vendor revenue, customer 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, customer value, and unit shipments.
For more information about IDC's Worldwide Quarterly Ethernet Switch and
Router Tracker, please contact Kathy Nagamine (firstname.lastname@example.org).
About IDC Trackers
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 on-line query tools. The IDC Tracker Charts app
allows users to view data charts from the most recent IDC Tracker
products on their iPhone
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