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Ethernet switching market benefits from sustained 100Gb demand

Written by Mon 4 Mar 2019

Demand for network infrastructure powering digital transformation efforts translated into a strong 2018 for the switching business, router market growth more modest

Last year’s 2017 analysis from IDC on the Ethernet switching and routing business showed only modest growth, which it pinned on big data centres opting for faster ports and the rise in software eating into routing revenue.

But in 2018 the Ethernet switching business experienced a welcome surge in growth, recording $7.8 billion in revenue in Q4, taking full year revenue to $28.1 billion, which amounts to a year-over-year growth rate of 9.1 percent. The market grew just 5.4 percent in 2017.

The growth of the global enterprise and service provider router market was more modest, recording $15.5 billion in revenue for 2018 representing a mere 1.8 percent growth over 2017.

‘Continued strength’

IDC network infrastructure vice president Rohit Mehra said there has been increased investment in mature and emerging markets in the network infrastructure underpining digital transformation efforts.

“The market’s strong fourth quarter helped push full-year gains in Ethernet switching and sets the market up for continued strength in 2019, creating opportunities for vendors to capitalise on around the globe.”

Yet again it was 100Gb Ethernet switch revenue that comprised a significant chunk of revenue, as it retains its position as the hyperscale and large enterprise default.

100GbE shipments topped 3.8 million ports in Q4 2018 and made up 13.6 percent of 2018’s Ethernet switching revenue, 10Gb revenue decreased 1.6 percent due to pricing pressures, meanwhile, 1GbE shipments grew 12.7 percent year-over-year and represented 41.8 percent of all switching revenues.

Cisco, the longstanding giant of switching and routing, saw its switching market share mildly eaten into by Arista, Huawei and HPE, declining from 54.8 percent recorded in 2017 to 52.8 percent. Cisco still remains the leader in the hotly contested 10GBE segment. Arista and HPE’s market share rose by 0.9 percent and 0.4 percent, respectively.

Written by Mon 4 Mar 2019

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ethernet networking routing switching
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