|[September 04, 2014]
IDC's Worldwide Quarterly Ethernet Switch and Router Tracker Shows Healthy Growth in the Ethernet Switch Market, Weakness in the Router Market
FRAMINGHAM, Mass. --(Business Wire)--
Worldwide revenues in the Ethernet switch market (Layer 2/3) reached
$5.7 billion in the second quarter of 2014 (2Q14), representing an
increase of 6.2% year over year and 8.1% quarter over quarter.
Meanwhile, worldwide router market revenues declined -4.0% year over
year despite growing 7.6% sequentially over the seasonally weak 1Q14,
according to the International Data Corporation (IDC)
Quarterly Ethernet Switch and Router Tracker.
From a geographic perspective, the Ethernet switch market saw its
highest growth in Asia/Pacific (excluding Japan)(APeJ), which had strong
year-over-year growth of 21.0% in 2Q14. This growth was due to
exceptional results in China (up 40.2% year over year) and India (up
29.3%) that more than offset the market weakness in Thailand and
Indonesia, which both experienced double-digit year-over-year declines
in 2Q14. Latin America also experienced strong growth in the Ethernet
switch market, growing 18.7% year over year with Argentina, Peru, and
Brazil leading the way. Western Europe saw its best performance since
3Q10 with a 13.9% year-over-year increase in 2Q14, showing the potential
for a solid rebound after years of difficult macroeconomic conditions
putting pressure on investments. On the other hand, Central & Eastern
Europe (CEE) declined -16.3% year over year in 2Q14 as political unrest
in Ukraine took its toll. Ukraine declined -31.7%, while Russia was down
-17.5% year over year in 2Q14. However, relative market weakness was not
limited to CEE. Japan declined -4.3% year over year and North America
was down -0.7% year over year, as both regions significantly
underperformed the overall market.
"The worldwide Ethernet switch market saw strong growth as a result of
continued gains in 10GbE and 40GbE port shipments, especially in the
datacenter, and with some regions and countries really outperforming
over recent historical trends," said Rohit
Mehra, Vice President, Network
Infrastructure at IDC (News - Alert). "The GbE market also did well in terms of
shipments in 2Q14, showing its ongoing importance across the enterprise
at the network edge, as well as in providing the underlying network
platform on which enterprise WLANs are being deployed."
10Gb Ethernet switch (Layer 2/3) revenue increased 7.8% year over year
to reach $2.2 billion while 10Gb Ethernet switch port shipments grew a
strong 23.0% year over year to reach 6 million ports shipped in 2Q14.
40Gb Ethernet continues to expand as a stand-alone segment and now
accounts for more than $323 million per quarter in revenue. 10Gb and
40Gb Ethernet continue to be the primary driver for revenue growth in
the overall Ethernet switch market.
The worldwide router market declined -4.0% year over year in 2Q14 with
varied results across he key segments within the market. The service
provider segment declined -0.9% year over year while the enterprise
segment was down -12.4% year over year. The router market also saw
varied results on a regional basis. Japan and Latin America registered
the best performance in 2Q14 with year-over-year growth in excess of 7%.
The Middle East & Africa region grew 4.6% year over year and Western
Europe added 1.7% growth in 2Q14. APeJ finished the second quarter flat,
while North America (down -11.5% year over year) and CEE (down -6.0%)
effectively dragged the overall market lower in 2Q14.
From a vendor perspective, Cisco's (News - Alert) Ethernet switch (Layer 2/3) revenue
increased 1.5% year over year in 2Q14 but Cisco's market share dipped
below 60% for the first time to 59.8% in 2Q14. This was down from 60.5%
in 1Q14 and 62.6% in 2Q13. Cisco's market share in the fast growing
10GbE market segment was 61.3% in 2Q14, down from 67.6% in 2Q13. Cisco's
service provider and enterprise router revenue declined -13.3% year over
year this quarter.
HP's Ethernet switch revenue increased 11.9% year over year and 18.2%
quarter over quarter in 2Q14, significantly ahead of the overall market.
HP's market share now stands at 10.0% in 2Q14, up from 9.1% in 1Q14 and
up from 9.5% in 2Q13.
Juniper also had a strong quarter, outperforming the overall market in
both Ethernet switching and routing. Its router revenue was up 5.2% year
over year and its Ethernet switch revenue saw a very healthy increase of
26.0% year over year.
"With growth in cloud deployments and increasing demand from datacenters
across the globe, 10GbE and 40GbE Ethernet will continue to drive the
Ethernet switch market," said Petr
Jirovsk�, Research Manager in IDC's Networking Trackers Group.
"However, vendors should be attuned to differences in market dynamics
across the regions."
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
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