According to a recent report by Dell'Oro Group, the global Ethernet switch market (Layer 2/3) sales surpassed $6 billion in the third quarter of 2015.
Notably, sales for vendors like Cisco Systems, Inc. CSCO, Arista Networks, Inc. ANET, Juniper Networks, Inc. JNPR and Brocade Communications Systems, Inc. BRCD reached a record high in the quarter.
From a geographic standpoint, the Ethernet switch market recorded the best sales in North America, with revenues topping $3 billion for the first time. Notably, Arista Networks, Cisco Systems, Hewlett Packard Enterprise Company HPE and Juniper Networks accounted for 84% of the region’s revenues during the quarter. Meanwhile, barring some parts of Latin America, the switch market in all regions has been doing remarkably well.
The report further envisaged a strong fourth quarter and another record year for the Ethernet switch market.
Meanwhile, according to a recent report by International Data Corporation (IDC), the global router market could not replicate its remarkably strong growth from last quarter and ended the third quarter flat on an annual basis and down 7.2% quarter over quarter. Notably, a 1.1% annual increase in the service provider segment was more than offset by a 3.5% decline in the enterprise segment.
Notably, the IDC report revealed that although 10Gb Ethernet switch port shipments improved 27.4% year over year, revenues at this segment declined 1.6% year over year and fell to $2.2 billion. In the third quarter, nearly 8.5 million ports were shipped, while average selling prices continued to plummet. Also, 40Gb Ethernet revenues crossed $644 million, highlighting an impressive increase of 41.4% year over year.
Nonetheless, IDC believes that the growing demand for 10Gb and 40Gb Ethernet switches is expected to propel growth in this market in the near term.
Further, the report indicates a bright future for the Ethernet switch market, as the latest standards of higher speeds like 25Gb, 50Gb and 100Gb Ethernet are likely to make up critical mass over the next few years.
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