Wired and Wireless Networking Revenues Grow in 2Q17

Monday Sep 25th 2017 by Sean Michael Kerner
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Ethernet router market hits $3.92B while the WLAN market reached $2.37B in second quarter 2017 revenue.

The networking market grew in multiple areas during the second quarter of 2017, according to IDC.

Looking at the wired networking market, the global market for both service-provider and enterprise routers generated $3.92 billion in 2Q17, for a 6.7 percent year-over-year gain. The worldwide  Ethernet switch market (Layer 2/3) reported $6.43 billion in revenue in the second quarter of 2017, representing a  7.8 percent year over year. Meanwhile, the worldwide total enterprise and service provider (SP) router market recorded $3.92 billion in revenue in 2Q17.

Not all areas of the wired networking market grew during the second quarter, with the 40 Gigabit Ethernet product segment declining as organizations increasingly choose 25 and 100 Gigabit Ethernet options. According to IDC, 40 GbE switch revenue fell by 9.1 percent, while port shipments declined IDC Ethernet 2Q17by 27.7 percent year-over-year. In contrast 100GbE revenues grew by 639 percent, with shipments growing by 284 percent.

"Application explosion associated with digital transformation and continued proliferation of cloud buildouts underpinned a strong market performance in 2Q17," Rohit Mehra, vice president, Network Infrastructure at IDC, said in a statement. "These transformational trends drive port shipments up, however the promise of emerging higher port speeds continually shifts the dynamics of Ethernet switching investments. Solid growth should continue throughout 2017, even as Ethernet switching and routing purchase behavior trends may take some turns."

From a vendor perspective, Cisco continues to lead the Ethernet switching market with a market share of 54.7 percent, which was down from 56.8 percent in the second quarter of 2016.


WLAN


In the wireless networking (WLAN) space, IDC reported that combined consumer and enterprise worldwide revenue came in at $2.37 billion for a 2.5 percent year-over-year gain.

The consumer side of WLAN however is not growing, with revenue declining by 7.2 percent to $892.3 million. In contrast, the enterprise WLAN market was reported at $1.48 billion for a 9.4 percent year-over-year gain.

"The enterprise WLAN market's 2Q17 performance sends a strong message that this market is still in growth mode," Nolan Greene, senior research analyst, Network Infrastructure at IDC, said in a statement. "WLAN is a critical enabler of end-to-end digital transformation strategies as wireless applications and devices continue to unlock new digital and business outcomes."

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

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