Ethernet Switch, Router Markets Grow in Q2, Report Finds

By Nathan Eddy  |  Print this article Print

An IDC report finds businesses around the world steadily adopting Ethernet switching and routing solutions.

In the second quarter of 2010 the IT research firm IDC found year-over-year revenue growth of 32.7 percent in the Ethernet switching and 11.0 percent in the Ethernet routing markets worldwide. The report, Worldwide Quarterly Enterprise Networks Tracker, said the numbers reflecting continued strong performance across all regions and key product segments in those markets.

IDC's update report found that the worldwide router market showed moderate strength in the Q2 2010. The report found the enterprise router market was marginally lower compared to the first quarter of the year, but had an 8 percent year-over-year gain. This segment continues to be soft and off by around 25 percent from the record levels seen in 2007 and 2008, the report noted. Service provider router revenue now accounts for nearly three-quarters of the router market and includes both core and edge routers.

"The continued market recovery in 2010 is very encouraging with all regions and market segments making a contribution," said IDC’s vice president of enterprise communications infrastructure and data center networks, Cindy Borovick. "IDC's Worldwide Quarterly Enterprise Networks Tracker shows a strong 87.9 percent year-over-year increase in 10GbE switch revenue in 2Q10 and for the first time there were more than 1 million 10GbE ports shipped in the quarter. The 10Gb adoption was driven by data center, cloud, and campus buildouts."

From a vendor perspective, the report found Cisco's Ethernet switch market share increased to 65.8 percent in Q2 2010 from 62.8 percent compared with the same period last year, but was down from 68.3 percent in the "exceptionally strong" first quarter of 2010. Borovick said Cisco performed on par with the service provider router market and now accounts for 46.1 percent of service provider router revenue—the same as in the second quarter of 2009.

"The second quarter performance was very good, following on the heels of exceptional first quarter results for the Ethernet switch market," said Rohit Mehra, director of enterprise communications infrastructure at IDC. "As seen in previous years, the second calendar quarter builds on the performance of the first, which is what the market delivered, showing strong year-over-year growth from the slowdown the market witnessed in 2009. The continued adoption of PoE (Power over Ethernet) and gigabit ethernet is also being helped by the underlying networking drivers – the growth of voice and video over IP applications, network-attached devices, virtualization, and cloud computing."

The Worldwide Quarterly Enterprise Networks Tracker provides global Ethernet switch coverage, including 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. Ethernet switch and router market results are delivered in a pivot table seven weeks after the close of the calendar quarter.