IDC’s Worldwide Quarterly Enterprise Networks Tracker Shows Moderate Fourth Quarter Growth in Ethernet Switch and Router Markets

Ethernet Switch Market Grew a Healthy 28.1% in 2010

FRAMINGHAM, MA – February 24, 2011 – The worldwide Ethernet switch market experienced 28.1% year-over-year growth for the full year 2010, while the worldwide router market performed nearly as well with 17.8% year-over-year growth in 2010, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Networks Tracker. The results reflect a continued recovery and good performance across all regions and key product segments.

"The fourth quarter was a moderately good quarter as a follow on to three quarters of better than 30% growth in the Ethernet switch market," said Rohit Mehra, director, Enterprise Communications Infrastructure at IDC. "Growing 13.4% year over year, but staying relatively flat over the previous quarter, the Ethernet switch market had revenues of $5.35 billion in the fourth quarter (4Q10) and $21.1 billion for the full year 2010. IDC believes that 4Q10 was a quarter of market consolidation after the strong growth from previous quarters. Although the underlying factors that drove growth in the first three quarters of 2010 still look favorable, IDC expects that overall market growth will be more moderate in 2011."

The worldwide router market also showed moderate strength in 4Q10, growing 13.9% over the previous quarter, and 22% year over year. The service provider segment, which accounted for 75.2% of the market in 4Q10, grew 18.4% over 3Q10, outperforming the enterprise router segment.

"The continued market recovery over 2010 is very encouraging for the enterprise networking market with most market segments making a contribution," said Cindy Borovick, vice president, Enterprise Communications Infrastructure and Datacenter Networks at IDC. "The Enterprise Networks Tracker shows that 10GbE switch revenue increased a moderate 4.2% over 3Q10 and a strong 57.3% year over year in the fourth quarter. More than 1.1 million ports shipped in 4Q10 as 10GbE adoption in datacenters and campus deployments continues to accelerate."

From a vendor perspective, Cisco's Ethernet switch market share essentially stayed flat to marginally down at 66.2% in 4Q10 from 67.07% in 3Q10, but was slightly up from 65.3% from 4Q09. Cisco's 10GbE revenue increased 52.5% year over year.

"In the broader Ethernet switching market, Gigabit Ethernet (GbE) increased a healthy 42.3% year over year in shipments and 29.7% year over year in revenue," said Petr Jivorsky, senior research analyst in IDC's Enterprise Communications Infrastructure Group. " Gigabit Ethernet now commands a 62.5 % share of the overall Layer 2/3 switching market, clearly pointing to the steady, ongoing decline of Fast Ethernet."

The IDC Worldwide Quarterly Enterprise Networks Tracker service delivers an Ethernet switch and router market pivot tables seven weeks after the close of the calendar quarter. The Ethernet switch coverage includes manufacturer revenue and port shipments by vendor, layer, speed, form factor, power over Ethernet (PoE) capabilities, and average pricing. The router coverage shows manufacturing revenue and unit shipments by vendor, product class, deployment, connectivity, and average pricing.

For more information about IDC's Worldwide Quarterly Enterprise Networks Tracker, please contact Petr Jirovsky (

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