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Ethernet switches of local networks World market

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2019: The market of network equipment was in a favorable situation

The amount of the world market of network equipment in 2019 showed growth what data of analysts of IDC confirm. They counted that annual sales of Ethernet switches (Layer 2/3) reached $28.8 billion, having increased by 2.3%. In a segment of routers small rise — for 0.4% to $15.5 billion is registered. And deliveries of routers to telecom operators in terms of money sank for 1.5%, and shipments of the equipment of a corporate class increased by 6.9%.

In a research it is said that the market of routers in the Pacific Rim sank for 1.1% at the end of 2019 concerning the 2018th. In the countries of the Middle East and Africa, on the contrary, 7.2% rise, and in the USA — recession for 3.1% is recorded. The American market remains the largest place of sale of routers.

Market leaders of switches, data of IDC

At the end of 2019 sales of switches in the countries of Central and Eastern Europe (Russia treats this region) increased by 1.7%. Data on the Russian market are not provided in a research. From this region only Poland is mentioned: here annual sales of switches jumped by 11.7%.

In the Pacific Rim (excepting Japan) sales of switches in 2019 increased by 1.5%, in China — for 3.6%, in Japan — for 4.2%. In the countries of the Middle East and Africa rise for 9.8%, including 6.9 percent growth in the UAE is recorded.

The volume of the Western European market of switches in 2019 was reduced by 2.9% in many respects because of Germany and Britain where sales sank for 5.5% and 6.8% respectively. In Latin America sales decreased by 2.6%, and in the USA they grew by 4.5%.

According to the vice president for researches of the market of network infrastructure of IDC Rohit Mehra, at the end of 2019 sales of the network equipment on a global scale were weak because of several factors, including macroeconomic problems, such as American-Chinese trade war and an exit of Britain from the European Union.

According to the expert, despite all problems of the company still consider priority investments into digital platforms which help them to transform the business and to go in step with competitors. Finally it will urge on expenses in the market of network equipment in the long term, Mekhra is sure.

The expert also added that spread of a new coronavirus of COVID-19 did not affect the market of network equipment in 2019, however epidemic will be reflected in the 2020th therefore weak indicators in the market will remain.

The amount of the world market of network equipment in 2019 showed growth what data of analysts of IDC confirm

Cisco remained the largest producer of network equipment in 2019, having written in the asset a share in the market of routers in the amount of 37.2%. At the same time revenue of the American company in the considered market decreased by 3.4%.

On the second place on sales of switches and routers there is Huawei of which in 2019 29.8% of revenue of sales of routers were the share. Revenues of the Chinese company from sale of such equipment increased by 4.1%.

Arista Networks completed 2019 with a 7 percent share in the market of a switching equipment against 6.5% the previous year. Hewlett Packard Enterprise (HPE) endured drop in sales of such devices for 9.1% therefore the market share of the company decreased from 6.1% to 5.4%.

The Juniper Networks company at which in 2019 sales of Ethernet switches were reduced by 7.2% is also mentioned in the research IDC, and in a segment of routers income decreased by 11.7%. Analysts noted a share in 13.2% at Juinper Networks in the market of operator routers whereas in 2018 the indicator was measured by 14.7%.[1]

2018: Sales of network equipment grew by 7% to $44 billion

In 2018 the volume of the world market of switches and routers exceeded $44 billion, having increased by 7% concerning the 2017th. Data of Synergy Research Group which were published on February 26, 2019 demonstrate to it. Global costs on Ethernet switches increased by 8%.

2017: IDC called market leaders of switches

On March 5, 2018 the International Data Corporation (IDC) analytical company provided results of a research of the world market of network equipment.

According to experts, in 2017 sales of Ethernet switches (Layer 2/3) on a global scale exceeded $25.7 billion, having increased by 5.4% concerning the 2016th.

The greatest growth rates of the market of switches are registered in the Pacific Rim where rise was measured by 11.3%. At the same time most of all such equipment is still on sale in the American market which volume rose almost by 3% in 2017.

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The market of the Ethernet switches continues to show steady growth thanks to projects of updating of networks and investments in fast-growing campuses and data centers. In the market of routers which operators and the companies use dynamics shown by vendors begins to change as end users aim at high-speed cloud communication — the analyst of IDC Petr Jirovsky reported.
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The largest producers of switches are listed in the report:

The largest producers of switches, data of IDC

2016: Changes in the three of the largest producers

On March 9, 2017 the IDC analytical company published short results of a research of the world market of network equipment. In the three of the largest producers of switches there was one change: Huawei rose to the second place, having outstripped Hewlett Packard Enterprise (HPE).

According to the experts, in 2016 sales of Ethernet switches (Layer 2/3) on a global scale reached $24.4 billion that is 2.4% more, than the previous year.

Alignment of forces among the largest producers of switches, data of IDC from the fourth quarter 2015 on the fourth quarter of the 2016th
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As the market of Ethernet switches reaches the high level of a maturity in equipment segments with ports from 1 to 10GbE, on it the accelerated transition to cheaper ports, especially in data centers is more and stronger shown — the analyst of IDC Rohit Mehra comments on a research. — Though deliveries of ports continue to grow, sales returns of the fastest equipment still support the market.
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At the end of 2016 Cisco remained the largest supplier of a switching equipment though the market share of the company decreased from 60.6% to 57%. Huawei with a 7 percent indicator of presence rose to the second place. HPE (6.4%) fell by the third position. Afterwards Arista Networks and Juniper Networks were located.[3]

2015: Growth by 3%

In April, 2016 analysts of Synergy Research Group published results of a research of the world market of network equipment. Its volume increased in many respects thanks to the growing demand for switches among the companies.

By experts it is counted that in 2015 sales of routers and switches reached $41 billion, having increased by 3% in comparison with previous year. Synergy Research notes that the main contribution to this rise was made by a segment of a corporate switching equipment to which share nearly 60% of the considered market fell. The segment following on value are routers for telecom operators, and then there are routers for needs of the organizations and the enterprises.

Cisco controls 56% of the world market of network equipment

In 2015 Cisco remained the leader of global market of network equipment, having written a 56 percent share in an asset. In the 2014th the same indicator took place. The closest persecutors of Cisco are the companies Juniper Networks Hewlett Packard Enterprise (HPE), Huawei and ALU which shares were measured by 6-8%. Further the group of vendors with the shares which are not exceeding 2% is located.

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Despite difficulties on the different Cisco fronts with success continues to take a position of the dominating supplier of switches and routers, having revenue which is approximately seven times higher, than at the closest competitor — the analyst of Synergy Research Group Jeremy Duke comments on a research. — This domination is to a large extent shown in the corporate sector where among vendors only HPE has a two-digit market share. In a segment of operator routers ALU, Juniper and Huawei, their share surely move ahead are two-digit. Thanks to  cooperation  with Ericsson the Cisco company can strengthen the sales channel of operator solutions and increase presence at this segment.
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2014: Record of sales

On March 2, 2015 the IDC company published the research report on the world market of a switching equipment for local networks.

At the end of 2014 universal sales of Ethernet switches (Layer 2/3) increased by 3.9% in comparison with previous year. Experts did not give absolute value in a year, but called an indicator for the last calendar quarter — $6.2 billion. So large market size for the three-months period never was earlier.

If demand for switches grew, then by routers, it opposite, fell. In 2014 it was sold for 0.6% of routers less worldwide, than in the 2013th. In October-December, 2014 sales of these network devices increased by 2.5% year on year, rather previous quarter rise was 5.6%.

In the world market of switches the record of sales is set

The main catalyst of growth in sales of switches the vice president for researches of the market of network infrastructure of IDC Rohit Mehra calls solutions 10GbE. The amount of their implementation reached $2.3 billion according to the results of final three months 2014 that is 5.2% more, than the previous year. Deliveries of ports in this segment increased by 24.4% to 6.8 million pieces.

The highest growth rates in the market of a switching equipment show devices 40GbE that as Mekhra explained, it is connected with how owners of data centers aim to increase capacities of platforms in the conditions of the growing demand for corporate and cloud applicaions. Revenue of vendors from sales of the equipment 40GbE jumped more than by 100% and exceeded $520 million in the fourth quarter 2014.

Solutions 1Gb Ethernet remain important for corporate networks, however the trend of falling of the prices can negatively affect this segment, Rokhit Mekhra added.

The list of the largest producers of switches did not undergo changes, at the end of 2014 it looks as follows: Cisco, HP, Huawei, Juniper Networks and Arista Networks. The leader of Cisco earned $14.2 billion from switches, and according to the results of a final quarter the market share of vendor made 61.1%, as well as the previous year. At the closest persecutor of HP the similar indicator of presence grew up from 9.2% in October-December, 2013 up to 9.5% a year later.

2011

The fourth quarter 2011

The world market of the network switches Ethernet in the fourth quarter grew 2011 by 1.2% in comparison with the last quarter and for 5.5% year on year.

In the fourth quarter 2011 the world market of switches of Ethernet networks reached record digit of income in $6.06 billion, thereby showing growth by 5.5% year on year and 1.2% in a quarter. Meanwhile, according to the research Worldwide Quarterly Enterprise Networks Tracker of International Data Corporation (IDC) company, in the fourth quarter 2011 the world market of routers was noted by decrease by 2.3% year on year. Preliminary results of the fourth quarter also show powerful market growth of the Ethernet switches in the countries of Latin America, Europe, the Middle East, EMEA and in Asian / Pacific regions which grew by 29.0%, 11.9% and 8.4% respectively. On the contrary, in the market of North America, after very powerful sales of the third quarter, in the fourth quarter 2011 decrease by 2.0% year on year is mentioned.

According to Rokhit Mekhra (Rohit Mehra), the head of researches of infrastructure of corporate communications of IDC company, recovery of the market of corporate networks in the second half of 2011 - very encouraging phenomenon for the market in general and the majority of segments of the market. Regions also introduce the amendments. "In 2012 the moderate growth of the market of the Ethernet switches is expected: Gigabit Ethernet returns to a rise trajectory, and devices 10GbE and 40GbE, as expected, will show a gain at the expense of data processing centers and deployment of networks in scientific and campuses", - the analyst noted.

During 2011 the world market of the Ethernet switches 2-3 levels was very inexpressive in comparison with results of 2010. Income was $21.1 billion while results in the world market of routers it is better – the gain since 2010 made 5.7%. Proceeds from sales of switches 10GbE (2-3 levels) grew year on year by 32.9% and for 5.1% in comparison with the last quarter. Deliveries of ports 10GbE grew to record 2.8 million units a quarter. In general for 2011 income of the market 10GbE switches grew by 26.5% for 2010 while deliveries of ports grew more than twice for the same period.

The world market of routers in the fourth quarter showed height of 7.3% quarter on quarter, but in annual showed decrease by 2.3%. According to analysts of IDC, it is good indicators, taking into account exclusive results of the fourth quarter 2010. Powerful growth of the regional markets of Latin America (16.6%) and the Pacific Rim (15.1%) is compensated by decrease in regions of North America and EMEA where recession in the fourth quarter was 2011 16.4% and 3.7% respectively, year on year.

Speaking about suppliers, IDC notes Cisco: the market share of its Ethernet switches (2-3 levels) in the fourth quarter reached 2011 64.3% - this digit is considerably improved since the beginning of year. Cisco is still strong in a segment of devices 10GbE where now it possesses 69.5% of the market according to the results of the fourth quarter 2011.

Market performance improvement in the fourth quarter mattered 2011, Petr Jirovský, the senior analyst of the IDC Networking Trackers research group considers in the respect that it helped the market of switches to finish on a major note year and to increase the amount of shipment of ports. "The market of switches (2-3 levels) in the fourth quarter 2011 of dews for 1.2% and 5.5% respectively, in comparison with previous year, and it serves as a good omen for the market in general", - the analyst emphasized.

The third quarter 2011

The world market of the Ethernet switches in the third quarter reached 2011 record revenue in $5.9 billion, showing thereby significant growth for 6.1% year on year and 10.9% - in quarter.

Meanwhile, in the third quarter the current year in the world market of routers growth by 2.9% year on year is also noted, the IDC company reports in the quarterly universal research of corporate networks Worldwide Quarterly Enterprise Networks Tracker.

Final results of the third quarter 2011 show excellent market indicators of sales of switches in the Pacific Rim which year on year grew by 27.8% and now are 25.8% of world income.

Mekhr's (Rohit Mehra) rickets, the head on researches of infrastructure of corporate communications in IDC, noted, despite weaker expectations of the first half of 2011 that the market of the Ethernet switches was recovered in the third quarter, being based substantially on healthy demand in the Pacific Rim. "In China significant growth in sales, for 44.1%, exceeded an indicator of growth of the third quarter 2010, however other countries in the region also show exclusive growth. Australia, Korea and India, for example, completed quarter with the annual profit of 27%-30% and by that again confirmed further relevance of development of network infrastructure in corporate IT".

Income from implementation of 10 GB of Ethernet switches year on year grew by 29.9% and 99.0% - in deliveries of ports, in connection with the continuing development of networks in data processing centers and scientific towns. Deliveries of 10 GB of Ethernet-ports increased up to record 2.09 million ports a quarter.

The world market of routers after several quarters of growth in the third quarter year on year grew only by 2.8%. It happened because of an indicator of annual growth in 9.4% in the countries of the Pacific Rim which was compensated by less significant digit of 0.5% of growth in the countries of both America, Europe, the Middle East and EMEA.

Regional sales

Among the large countries, outstanding indicators showed: China which market grew by 12.9% year on year, Japan - for 10.9%, Australia with growth in 13.2% and Germany with a gain of 8.4% year on year. On the contrary, negative macroeconomic conditions had an impact on results in Italy, Portugal and Greece where revenue decreased more than by 20% year on year and also Spain where in a year revenue was reduced more than by 13%. The Segment of deliveries of services to which share 73.9% in the third quarter fell grew by 5% year on year, at the same time the corporate segment detected decrease by 2.8%.

Leading companies

The market share of Ethernet switches (level 2/3) of Cisco company in the third quarter which included powerful July reached 66.5% that shows considerable rise from a mark of 63.8% of the second quarter 2011. Now the market share of Cisco reached the highest level observed by analysts within a year. The company is still very strong in a segment of 10 GB of Ethernet switches where it holds more than 73% of the market in the third quarter 2011.

Trends of Gigabit growth

According to the conclusion of Petr Jirovský, the senior analyst of IDC Networking Trackers Group, in broader understanding of the market of the Ethernet switches, revenue from Gigabit devices grew by 2.7% year on year, and deliveries of ports reflect high growth rates in 27.1% as transition from Fast Ethernet technology to Gigabit Ethernet continues. "Gigabit Ethernet devices make a share in 61.6% of total income of the market of the Ethernet switches and 46.9% of delivery of ports now", - he noted.

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