IDC’s Worldwide Quarterly Ethernet Switch and Router Tracker Shows Strong Third Quarter Results
FRAMINGHAM, Mass., December 5, 2013 – The worldwide Ethernet switch market (Layer 2/3) reached $5.66 billion in the third quarter of 2013 (3Q13), representing a year-over-year increase of 6.5%. On a sequential basis the 3Q13 increased 5.2%. Meanwhile, the worldwide router market jumped 7.8% year over year, which was the highest annual growth rate seen in over two years. Sequentially, the router market increased 2.2%, according to the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch and Router Tracker.
From a geographic perspective, the 3Q13 results show the Ethernet switch market had its highest growth in Middle East & Africa (22.7% year over year) and very good growth in North America (12.0% year over year). Latin America and Asia/Pacific (excluding Japan) both grew in the mid-single digits while the Western Europe and Central & Eastern Europe regions were up in the 1-2% range. Meanwhile, Japan declined -13.4% year over year in 3Q13.
"The worldwide Ethernet Switch market is increasingly a tale of two market segments with different market dynamics: the enterprise campus segment, which includes the network edge, and the higher growth datacenter segment that is driving 10GbE and 40GbE as cloud rollouts continue to increase," said Rohit Mehra, Vice President,Network Infrastructure at IDC. "It's also worth noting that growth trends and overall regional performance in these segments vary widely among the regional and country markets across the various theaters, driven by a convergence of macro-economic issues and different states of maturity of datacenter and cloud deployments."
10Gb Ethernet switch (Layer 2/3) revenue increased 12.0% year-over-year while 10Gb Ethernet switch port shipments grew a strong 40.1% year over year to 4.97 million ports in 3Q13. 10GbE continues to be the primary driver of the overall Ethernet switch market, with the early stage 40GbE just starting to reach critical mass as a stand-alone segment.
The worldwide enterprise and service provider Router market also performed well in 3Q13, increasing 7.8% year over year and 2.2% sequentially in the quarter. Regionally, the results were quite uneven, ranging from more than 30% growth in Middle East & Africa and Central & Eastern Europe to a significant -26.3% decline in Japan. North America increased 14.8% year over year while Western Europe and Latin America were up high single digits. Asia/Pacific (excluding Japan) declined -1.5% year over year in 3Q13.
From a vendor perspective, Cisco's Ethernet switch (Layer 2/3) market share in 3Q13 held steady from last quarter at 62.3%. Cisco's market share in the fast-growing 10GbE market segment was 65.9% in 3Q13. HP's Ethernet Switch revenue increased 5.3% quarter over quarter and 6.5% year over year in 3Q13, on par with the overall market. HP's market share now stands at 9.4% in 3Q13.
"With the unified enterprise network edge gaining market traction and new applications for the Internet of Things continuing to emerge, Gigabit Ethernet (GbE) is expected to hold its own for the foreseeable future," said Petr Jirovský, Research Manager in IDC's Networking Trackers Group. "Of course, noticeable regional and country-level variances continue to be seen, so vendors are best advised to take those into consideration while working on their near to mid-term strategies."
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), form factor (fixed managed, fixed unmanaged, modular), and layer (L2, L3, L4-7). Measurement for the Ethernet switch market is provided in factory revenue, customer revenue, and port shipments. The router market is further split by product class (high-end, mid-range, low-end, SOHO) and deployment (service provider, enterprise) and the measurements are in factory revenue, customer revenue, 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
IDC 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 excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
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