Ethernet switch market declines 12.3%

Steep quarterly decline leads to just 0.4% year-over-year growth, says IDC

Tags: IDC Middle East and Africa
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Ethernet switch market declines 12.3% The EMEA region's Ethernet switch market saw a year-over-year decline of 0.5%, IDC said
By  Tom Paye Published  June 2, 2014

The worldwide Ethernet switch market (Layer 2/3) reached $5.2bn in the first quarter of 2014, posting a year-over-year growth of just 0.4%, according to the latest insights from IDC. The market saw a quarter-over-quarter seasonal decline of 12.3%.

From a geographic perspective, the EMEA region's Ethernet switch market saw a year-over-year decline of 0.5%, and North America declined 1.2%.

"The worldwide Ethernet switch market continues to see different trends across market segments with data centre 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 of network infrastructure at IDC.

"10GbE and 40GbE switch ports for the data centre 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 Q1, IDC said.

The research houses added that 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. However, 10Gb and 40Gb Ethernet continues to be the primary driver of the overall Ethernet switch market, IDC said.

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