FRAMINGHAM, Mass.–(BUSINESS WIRE)–The worldwide Ethernet swap market (Layer 2/three) recorded $6.75 billion in income in the third quarter of 2017 (3Q17), a rise of 7.four% 12 months over 12 months. Meanwhile, the worldwide complete enterprise and service supplier (SP) router market recorded $three.91 billion in income in 3Q17, growing sturdy 9.four% on a year-over-year foundation. These progress charges are in response to outcomes revealed in the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker.
From a geographic perspective, the 3Q17 Ethernet swap market noticed sturdy efficiency throughout the globe. The Central and Eastern Europe (CEE) area noticed one of the best outcomes in 3Q17, rising 16.6% 12 months over 12 months. Within CEE one of the best performing international locations have been the Czech Republic (up 47.three% 12 months over 12 months) and Hungary (up 40.2% 12 months over 12 months). Asia/Pacific (excluding Japan) (APeJ) and Western Europe each elevated greater than 12% 12 months over 12 months (12.6% and 12.four%, respectively) in 3Q17. Notable nation outcomes inside APeJ and Western Europe embrace China with a robust 19.four% enhance, Germany (up 23.2%), and India (up 18.2% 12 months over 12 months). On the opposite hand, United Kingdom (UK) continued to be impacted by uncertainty surrounding Brexit and declined three.2% 12 months over 12 months in 3Q17. Japan grew in double digits and was up 11.four% 12 months over 12 months in 3Q17. Latin America’s stable 7.7% enhance was on par with the general market. Somewhat lagging the general Ethernet swap market was North America with its three.four% year-over-year enhance. The solely area that skilled a decline was Middle East & Africa (MEA) this quarter, happening 1.2% 12 months over 12 months.
“Strong application-related infrastructure and services requirements at the edge and core are continuing to complement significant cloud buildouts, keeping the demand side humming for network infrastructure,” mentioned Rohit Mehra, vp, Network Infrastructure at IDC. “In parallel, connecting the edge to the core and cloud requires upgrades to WAN connectivity for which we continue to see increasing demand across enterprises as well as service providers, leveraging the architectural disruptions from areas like SD-WAN and mobile backhaul.”
100Gb Ethernet swap income continues to develop quickly as adoption by hyperscale and different cloud suppliers, in addition to giant enterprises, continues to speed up. 100Gb shipments reached nearly 1.2 million ports and $608 million in income. 100Gb now accounts for 9.zero% of the entire market income, up from simply three.6% in 1 / 4 a 12 months in the past. 25Gb/50Gb Ethernet swap merchandise are beginning to achieve traction as nicely, and in 3Q17 shipments exceeded 750,000 ports and $85 million in income. As anticipated, the expansion in 25Gb, 50Gb, 100Gb is negatively impacting the 40Gb section. 40Gb shipments decreased 36.7% 12 months over 12 months and income was down 20.zero% 12 months over 12 months in 3Q17. 10Gb skilled stable outcomes in 3Q17 with shipments rising 49.6% 12 months over 12 months and income growing 5.2% 12 months over 12 months. Meanwhile, 1Gb as the first connectivity know-how for enterprise campus and department deployments continues to account for a majority of the Ethernet switching market. 1Gb port shipments reached 105.9 million ports after rising 10.6% 12 months over 12 months and now accounts for 66.6% of all ports shipped in 3Q17. In phrases of income, 1Gb elevated 2.four% 12 months over 12 months and accounts for 42.6% of income.
The worldwide enterprise and service supplier router market grew 9.four% on a year-over-year foundation in 3Q17 primarily based on a robust 14.eight% enhance in the bigger service supplier section and a 6.three% lower in enterprise routing. This shall be a market to look at intently over the approaching quarters as software-defined architectures begin to take maintain throughout the WAN, with the potential for SD-WAN to disrupt conventional routing architectures and WAN transport providers markets particularly on the community edge.
The mixed enterprise and service supplier router market noticed a diverse regional efficiency in 3Q17, with APeJ recording the strongest progress (up 31.7% 12 months over 12 months). MEA additionally carried out nicely, rising eight.9% 12 months over 12 months in 3Q17. CEE, North America, and Japan all noticed mid-single digit progress in 3Q17, up 5.6%, four.eight%, and four.eight%, respectively. Western Europe declined four.7% on an annual foundation, whereas Latin America decreased 15.9% 12 months over 12 months in 3Q17.
Cisco completed 3Q17 with a year-over-year enhance of 6.eight% in the Ethernet switching market and market share of 56.7%, up from its 54.7% share in 2Q17 however barely down from 57.zero% in 3Q16. In the vigorously contested 10GbE section, Cisco held 53.three% of the market in 3Q17, up from 51.6% in the earlier quarter. Cisco noticed its mixed service supplier and enterprise router income enhance three.zero% on an annual foundation, whereas its market share got here in at 41.four% in 3Q17, up from 40.eight% in 2Q17, however down from 44.zero% in 3Q16.
Huawei continued to carry out nicely in each the Ethernet swap and the router markets on an annual foundation. Huawei’s Ethernet swap income grew 14.1% 12 months over 12 months in 3Q17 for a market share of 7.7%, up from 7.2% in 3Q16. Huawei’s enterprise and SP router income elevated 44.zero% over the identical interval to complete with 21.9% of the entire router market in 3Q17 in comparison with 16.6% in 3Q16.
Hewlett Packard Enterprise’s (HPE) Ethernet swap income elevated 7.5% 12 months over 12 months in 3Q17 and its market share stands at 5.5%, down from 5.6% in 2Q17 however flat on an annual foundation. (Note: HPE and H3C are tracked individually as of 2Q16).
Arista Networks carried out nicely in 3Q17 with its Ethernet switching income rising 49.6% 12 months over 12 months and incomes a market share of 5.6%, up from four.zero% in 3Q16.
Juniper’s Ethernet switching decreased by four.2% 12 months over 12 months in 3Q17 bringing its market share to three.2% versus three.5% in 3Q16. Juniper additionally noticed a 5.6% 12 months over 12 months lower in mixed service supplier and enterprise router revenues, with market share of 15.zero% in comparison with 17.three% in 3Q16.
H3C’s Ethernet swap income, which is absolutely coming from the PRC and Hong Kong markets, grew 37.three% 12 months over 12 months in 3Q17. H3C is discovering success each in the enterprise in addition to with the PRC cloud suppliers. H3C’s enterprise router enterprise additionally carried out nicely and elevated 50.9% 12 months over 12 months in 3Q17.
“Among the major regions, North America was the outlier this quarter with somewhat weaker growth, whereas some key countries and regions outdid the market with a significantly high growth uptake in the switch and router segments respectively,” mentioned Petr Jirovsky, analysis supervisor, Worldwide Networking Trackers. “There are opportunities for emerging OEM and ODM vendors to gain share while challenging more established vendors to rethink how they compete.”
A graphic illustrating worldwide revenues for the highest 5 Ethernet swap corporations for the earlier 5 quarters is obtainable by viewing this press release on IDC.com.
The Worldwide Quarterly Ethernet Switch Tracker and the Worldwide Quarterly Router Tracker present complete market measurement and vendor shares for the Ethernet swap and router applied sciences in an easy-to-use Excel pivot desk format. The geographic protection for each the Ethernet swap market and the router market consists of eight main areas (USA, Canada, Latin America, Asia/Pacific (excluding Japan), Japan, Western Europe, Central and Eastern Europe, and Middle East and Africa) and 60 international locations. The Ethernet swap market is additional segmented by pace (100Mb, 1000Mb, 10Gb, 25Gb, 40Gb, 50Gb 100Gb), product (mounted managed, mounted unmanaged, modular), and layer (L2, L3, ADC). Measurement for the Ethernet swap market is offered in vendor income, worth, and port shipments. The router market is additional cut up by product (high-end, mid-range, low-end, SOHO), deployment (service supplier, enterprise), connectivity (core, edge), and the measurements are in vendor income, worth, and unit shipments.
For extra details about IDC’s Worldwide Quarterly Ethernet Switch and Router Trackers, please contact Kathy Nagamine (firstname.lastname@example.org).
About IDC Trackers
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