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Networking Market Slows with Declining Ethernet Switch, Router Growth

by Sean Michael Kerner

Momentum is not headed in the right direction for the Ethernet switch and router market.

The global market for switching and routing equipment stalled at the end of the year according to the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker.

IDC reported that the global Ethernet switch market reported $7.6 billion in fourth quarter 2019 revenue, which is a 2.1% year-over-year decline. The switch market decline however is not as bad as what's going on in the router market. IDC reports that the worldwide enterprise and service provider (SP) router market reported $4.2 billion in revenue for 4Q19 which is a 7.7% decline.

100GbE Growing

While the overall market is down, some segments of the switching market remain strong. In particular 100 Gigabit Ethernet (GbE) switch revenue were up by 24.7% according to IDC, on shipments of 5.8 million ports, totaling $1.4 billion in revenue in 4Q19. 25GbE is also growing with port shipment up by 57.1%.

10GbE which has long been the cornerstone of data center and enterprise networks is going the other ways with a revenue decline of 13.0% though the number of ports ships grew by 7%.

"While the rise and spread of the novel coronavirus, COVID-19, did not impact these 4Q19 results, it will not ease these pressures in the early part of 2020 where we expect this softness to continue," Rohit Mehra, vice president, Network Infrastructure at IDC, wrote in statement. "Despite these headwinds, enterprises are still prioritizing investments in digital platforms in order to transform their businesses and keep pace with competitors, which will ultimately continue to buoy spending in the networking market over the long term."

Vendor Rankings

Cisco continues to dominate the switch market with a 50.9% market share, though it reported declining 4Q19 switch revenue that were down by 6.4%.

Huawei holds a 9.6% share of the switch market on revenue growth of 8.9%, while Arista Network holds down a 7.0% market share, even after its 4Q19 revenue declined by 11.1%.

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

This article was originally published on Monday Mar 16th 2020
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