IDC reveals Ethernet switch and router market share

Ethernet switch market share for Q1 2016
IDC, a top research agency, has revealed the Ethernet switch and router market share — from telecoms and enterprises — of vendors such as Cisco, HPE, Huawei and Juniper Networks for Q1 2016.

Ethernet switch market

Cisco’s Ethernet switching market revenue fell 4 percent. Ethernet switching market share of Cisco dipped to 59 percent in Q1 2016 from 59.2 percent in Q4 2015.

Hewlett Packard Enterprise’s (HPE) Ethernet switch revenue rose 18.1 percent in Q1 2016. HPE’s market share increased to 9.7 percent in Q1 2016 from 9.2 percent in Q4 2015.

Huawei’s Ethernet switch revenue grew 33.2 percent.

Juniper Network’s Ethernet switching revenue decreased 7.3 percent in Q1 2016.

The Ethernet switch market (Layer 2/3) revenue increased 1.4 percent to $5.48 billion in the first quarter of 2016.

Rohit Mehra, vice president, Network Infrastructure, IDC, said: “Macroeconomic uncertainty hampered the EMEA region, while North America and APeJ continued with infrastructure refresh cycles, preparing networks for digital transformation.”

The IDC report noted that price erosion played a role globally, especially in the 10/40GbE segments, as the industry prepares for 25/50/100 GbE shipments to commence in volume.

10Gb Ethernet switch revenue increased 1.2 percent to just under $2 billion. 10Gb Ethernet switch port shipments grew 29.8 percent to more than 8.3 million ports as average selling prices (ASPs) continued to fall.

40Gb Ethernet revenue rose 32.9 percent to $679.6 million in Q1 2016, while shipments grew 112 percent to 1.8 million ports.

IDC said 10Gb and 40Gb Ethernet are expected to be the primary drivers of the overall Ethernet switch market in 2016. 1Gb Ethernet switch revenue decreased 5.1 percent, despite a 9.7 percent increase in port shipments.

Router market

Enterprise and service provider (SP) router market revenue increased 3.3 percent to $3.47 billion in Q1 2016.

The service provider router market revenue rose 4.9 percent.

The enterprise router market dipped 1.6 percent.

Cisco’s revenue from service provider and enterprise router market decreased 2.4 percent, while its market share reached 48.8 percent in Q1 2016.

Huawei’s enterprise and SP router revenue increased 34.1 percent. Huawei has 16.3 percent share in the total router market.

Juniper Networks achieved 2.7 percent increase in revenue in the combined service provider and enterprise router revenues, with market share of 14.5 percent.

“This will be a market to watch closely over the coming quarters as software-defined architectures start to take hold across the WAN, enabling enterprise network managers and service providers alike to benefit from these emerging capabilities,” said IDC.

Petr Jirovsky, research manager, Worldwide Networking Trackers at IDC, says that the emergence of speeds such as 2.5Gb, 5Gb, 25Gb, and 50Gb Ethernet, along with 100Gb Ethernet to tackle customer needs for the investment in cloud and digitization will lead to more transitions.

Baburajan K
editor@telecomlead.com