Ethernet Switch-Chip Market to Grow Rapidly: Linley Report

The Linley Group, a source for independent technology analysis of semiconductors, recently released the eighth edition of its report titled "A Guide to Ethernet Switch and PHY Chips." The report analyzes the trend of the Ethernet switch-chip market and other factors that will impact its future.

According to authors Jag Bolaria and Bob Wheeler, senior analysts at The Linley Group, the market for Ethernet Switch-chips and PHY chips experienced a record $1.6 billion growth in 2011.

Gigabit Ethernet (GbE) switches for enterprises is expected to provide the greatest revenue. At the same time, although Carrier Ethernet is seen as the key trigger for GbE switch-chip shipments, enterprise transition to GbE is also expected to count.

However, 10G Ethernet (10GbE) switches for data center applications is gathering momentum and growing rapidly. In fact, an increase in the use of such switches led to switch-port shipments doubling in 2011.

Merchant 10GbE switch-port shipments are expected to maintain this trend and show an impressive growth rate of 38.6 CAGR through 2015. Growth in cloud data centers and Intel's (News - Alert) upcoming Romley platform are triggers that could drive this market.

In another report, the Linley Group released the “Mobile Semiconductor Market Share Forecast 2010-2015 which predicted wide shifts in market share for mobile chip vendors. The report forecasts mobile chip vendor market share and revenue in five semiconductor categories – cellular baseband processors, application processors, Bluetooth transceivers, mobile Wi-Fi chips and GPS receivers. Based on in-depth analysis of both mobile chip vendors and mobile device market trends, The Linley Group predicts growth of nearly 40 percent through 2015, with revenue rising from $21.4 billion in 2010 to $29.9 billion.