Solid year behind, better year ahead for Ethernet switch market

BANGALORE, INDIA: Global Ethernet switch market totaled $5.1 billion in 4Q12, up five per cent sequentially, and $19.8 billion in 2012, up almost $1 billion over 2011 (+4.7 per cent), as per market research firm Infonetics Research.

"Given the finicky economic backdrop, weakness in Europe, and lower spending by public sector customers, Ethernet switches turned in a solid performance in 2012, returning to modest growth," notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

"And signs are pointing to a healthier road ahead as discounting returns to normal levels and buyers seek higher-value products like layer 3 switches and higher-speed ports."

All top five Ethernet switch revenue leaders - Cisco, HP, Juniper, Dell, Brocade - increased revenue in 2012 over 2011, though smaller vendors managed to gain market share.

Together, Cisco and HP capture over three-fourth of the global Ethernet switch market. 10G is accounting for almost all Ethernet switch revenue growth: 10G port shipments grew 66 per cent in 2012, driven by data center upgrades, 10G server adoption, server virtualization, and core network buildouts. 40G Ethernet is growing rapidly, with port volumes up 10-fold in 2012, from a small base.