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2020: Switch and router market drop by 3.5% to $27.8 billion - IDC
The volume of the global market Ethernet-switchboards routers and at the end of 2020 amounted to $27.8 billion, down by 3.5% compared to 2019. Such data led in a research company. IDC
According to analysts, network equipment sales on a global scale in 2020 decreased due to the coronavirus pandemic: in COVID-19 the context of a difficult epidemiological situation, companies began to switch to, remote work which led to a reduction in purchases of routers, routers and other IT equipment used in organizations.
 | The Ethernet switch industry continues to be driven by hardware markets with the highest speed ports [100 and 50/25 Gb - approx. TAdviser], which are rapidly spreading in data centers and benefit from demand from hyperscaled projects, second-tier cloud data centers and some large cloud infrastructure companies, says IDC Vice President of Data Center Markets and Multi-Cloud Networks Brad Casemore, whose words are quoted in a press release. - Meanwhile, the more mature non-DPC product market continued to be hampered by the impact of the COVID-19 pandemic, which has caused a number of organizations to postpone or reconsider investment in office networks against the backdrop of adapting to a hybrid form of work. |  |
In 2020, network equipment deliveries with 100 Gbit ports jumped 40% compared to 2019. In the 50/25 GB product segment, equipment shipments increased by a third in monetary terms (up to $655 million) and by 28.1% in pieces.
In the category of lower-speed equipment (10 Gbit), which is more mature compared to other segments, quantitative deliveries increased by 20.5%, but revenue fell by 2.7%. Such products account for more than a fourth of the entire market.
The study also says that at the end of 2020, Ethernet switches for data centers accounted for 14.1% of the total number of ports, and the share in money reached 43.6%. Meanwhile, non-DPC switches still occupy most of the supplies in kind (85.9%) and in money (56.4%).
According to Petr Jirovsky, research director at IDC Networking Trackers, the dynamics of the change in the volumes of router and switch markets in 2020 differed from region to region, indicating the uneven impact of the COVID-19 pandemic on the economy around the world.
According to IDC estimates, Cisco remains the world market leader in switches and routers. The share of the American company in terms of sales of operators and corporate class routers in 2020 was 32.9%. In the switch segment, the American vendor accounted for about 38.7% of sales, and its revenue here decreased by 9.5%.
Huawei retained second place. Analysts estimated the contribution of the Chinese manufacturer in the reviewed markets to the volume of the switching equipment market at 10.5%, and in the router segment the company's indicator was 32.9%.
In addition, Arista Networks and HPE with market shares of 6.4% and 5.8%, respectively, were among the largest switch manufacturers. Juniper Networks, which is also one of the leaders in the network equipment market, at the end of 2020 recorded 3% of the revenue from the supply of switches and 10.8% of the revenue from the shipment of routers. Juniper Networks sold routers for the year decreased by 0.7%, switches - by 3%.[1]
2018
Sales of routers and switches rose 7% to $44 billion
In 2018, the global market for switches and routers exceeded $44 billion, an increase of 7% compared to 2017. This is evidenced by the data of Synergy Research Group, which was released on February 26, 2019.
Global spending on routers in 2018 remained at the level of the previous year, and costs for Ethernet switches increased by 8%. In the corporate sector, sales of routers increased slightly compared to 2017, while in the segment of equipment for telecom operators there was a slight decline.
| | If you look at the entire market for Ethernet switches and routers, the most noticeable feature is stability, "says John Dinsdale, senior analyst at Synergy Research Group. - Despite numerous problems, this large market, although slowly, continues to grow from year to year. Moreover, we expect that this trend will not change in the future. | |
The expert also noted "another noteworthy feature" - Cisco's control of more than 50% of the network equipment market. The company's share did not fall below this figure for about three years. In terms of switch sales, Cisco accounts for 57%, and in the router segments for corporate and telecommunications customers, the corporation's shares were 60% and 37%, respectively.
Huawei's market share continues to grow, Arista is becoming an increasingly strong competitor in the market of large high-speed switches, but this does not prevent Cisco from confidently leading, Dinsdale emphasized.
Speaking about other trends in the network equipment market, experts noted a further increase in demand for switches with support for gigabit Ethernet interface (1GbE), as well as the rapid spread of switches 100 GbE and 25 GbE. Switching equipment accounted for 59% of the market.[2]
Up 13% to $125 billion - Synergy Research
On January 8, 2019, the analytical company Synergy Research Group announced some results of a study of the global market for equipment and software for deploying IT infrastructure in companies.
Sales of enterprise infrastructure solutions (servers, Ethernet switches, routers, collaboration systems, wireless networking/WLAN/equipment) in 2018 reached $125 billion, rising by almost 13% compared to 2017.
The largest and fastest growing segment of the market under consideration, experts call servers for data centers. Their sales in monetary terms jumped by 26% largely due to the implementation of the most technically advanced configurations with a high average sales value.
The second largest segment in the market under consideration are switches and routers, whose sales in 2018 increased by 3% and amounted to about $28 billion.
In terms of dynamics, the second place is the equipment for organizing collaboration in the cloud: here revenue increased by 22%, reaching $25 billion. Specialists associate such an increase with a decrease in the cost of local solutions.
Products for wireless LANs and network security also showed growth in 2018. Judging by the diagram, companies around the world spent about $5 billion and $10 billion on such technologies, respectively, which is 8% and 6% more than a year ago.
The largest manufacturer of solutions for corporate IT infrastructures remains Cisco with a share of 23% at the end of 2018, which is 2 percentage points less than the previous year. The main reason for the decline is the rapid growth of the server market, where the American company ranks only fifth.[3]
See also
- Data Center Infrastructure (Global Market)
- Cloud Computing (Global Market)
- Integrated IT Infrastructure Projects
- Engineering Infrastructure and Integrated Security
Notes
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