Ethernet Switch Market Grows to $6.1 Billion in 3Q15

40 Gigabit Ethernet revenue growth now outpacing 10 Gigabit Ethernet.

By Sean Michael Kerner | Posted Dec 9, 2015
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The global market for Ethernet switching equipment is still growing, according to the latest market sizing report from analyst firm IDC.

According to IDC's 3Q15 Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker, there was $6.1 billion in revenue generated during the third quarter of 2015, representing a two percent year-over-year gain.

Different segments of the Ethernet market grew at different rates.

"Overall revenue and port shipment growth rebounded somewhat in 3Q15, even though the usually strong 10Gb segment continued to see weakness in year-over-year revenues," Rohit Mehra, Vice President, Network Infrastructure at IDC, said in a statement. "At any rate, shipments of 10Gb Ethernet and higher speeds is a testament to the strong demand to support a diverse array of enterprise and datacenter workloads and service provider infrastructure."

IDC reported 10 Gigabit Ethernet revenue during the third quarter was $2.2 billion for a 1.6 percent year-over-year decline. While revenue is declining, there are actually more 10 Gigabit ports being shipped, with 8.5 million ports shipped in the third quarter for a 27.4 percent year-over-year gain. 1 Gigabit Ethernet switch port revenue is also falling, though only by 0.3 percent year-over-year, as this segment continues to face price erosion.

The big growth winner during 3Q15 was 40 Gigabit Ethernet switch ports, with 41.4 percent year-over-year revenue growth up to $644 million.

"While demand for higher speeds such as 10Gb and 40Gb Ethernet increases, declining average switch port selling prices have had a flattening effect on overall market growth," Petr Jirovsky, a research manager in IDC's Networking Trackers Group, said in a statement. "The emergence of speeds such as 2.5Gb, 5Gb, 25Gb, and 50Gb Ethernet, along with 100Gb Ethernet reaching critical mass over the next few years, will make this an interesting market to watch."

In terms of vendor growth, Juniper grew its Ethernet switching revenues by 39.4 percent year-over-year.

Sean Michael Kerner is a senior editor at Enterprise Networking Planet and Follow him on Twitter @TechJournalist.

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