NEEDHAM, Mass .– (COMMERCIAL THREAD) – The global Ethernet switch market reported revenue of $ 7.4 billion in the second quarter of 2021 (2Q21), an increase of 10.8% year-on-year. At the same time, the global enterprise and service provider (SP) router market revenue declined 0.5% year-on-year in 2Q21 to $ 3.9 billion. These results come from the Worldwide Quarterly Ethernet Switch Tracker and the Worldwide Quarterly Router Tracker from International Data Corporation (IDC).
Highlights of the Ethernet Switch Market
The 10.8% annualized growth of the Ethernet switch market builds on the 7.6% growth in the first quarter of 2021. For the first half of the year, Ethernet switch revenue is up 9.3 % from 2020. Compared to the second quarter of 2019 – before the COVID-19 pandemic – revenues increased by 3.8%.
From a geographic perspective, the 2T21 Ethernet Switch market has performed well in most regions of the world. In Asia / Pacific, the People’s Republic of China revenue grew 11.6% year-over-year, while the Japanese market grew 8.3%. More broadly in the Asia / Pacific region, excluding China and Japan, the market grew 20.5% year-on-year during the quarter, driven by the Singapore market growing by 58.2% per year. In Europe, results were mixed: the Western European market grew 23.1% year-on-year with the strength of France, which grew 39.3%. The Central and Eastern European market remained essentially stable with growth of 0.5%, while Russia fell by 4.8%. In the Middle East and Africa, the market grew 2.6% year-on-year. In the Americas, US revenue grew 6.2%, the Canadian market fell 1.0%, and the Latin America market grew 8.1% year-on-year, with Mexico increasing by 15.8% compared to the previous year.
“IDC has had a good start to 2021 for the global Ethernet switch market, as macroeconomic conditions improve and a growing number of organizations around the world have demonstrated digital persistence and resilience in the face of challenges. recurring challenges presented by the COVID-19 pandemic, ”said Brad Casemore. , Vice President of Research, Data Center and Multicloud Networks at IDC. “Companies have made notable investments in their campus networks, as hyperscalers and other cloud service providers continue to drive the growth of high-bandwidth data center switching. ”
Overall port shipments increased 28.4%, driven by strength in the non-datacenter portion of the Ethernet switch market. Non-datacenter Ethernet switch revenue increased 17.7% in 2Q21 and port shipments increased 36.1%. The non-data center Ethernet switch market portion accounts for 88.6% of port shipments and 58.5% of total market revenue with the remainder of the port revenue and shipments being in the data center portion of the market. In the data center segment, revenue grew 2.4% year-on-year, while port shipments were down 10.6%.
The higher speed segments of the Ethernet switch market continue to experience significant growth, driven by hyperscalers and cloud providers. Revenue in the 200/400 GbE switch market increased 132.5% between Q1 and Q2 2021, with port shipments more than tripling (+ 206.0%) on a sequential basis. 100GbE revenue grew 15.4% on an annualized basis, while port shipments increased 11.4% year over year. 25/50 GbE revenues increased 25.6% year-on-year while port shipments increased 1.3%.
Low speed switches, a more mature part of the market, have seen mixed results. 10GbE port shipments grew 3.1% year-over-year, but revenues were down 8.4%. 10Gb switches represent 23.4% of total market revenue. 1GbE switches grew 33.2% per year in port shipments and 14.4% in revenue. 1GbE represents 35.9% of total revenue in the Ethernet switch market. 2.5 / 5GbE revenue increased 25.3% sequentially from 1Q21 to 2Q21, while port shipments increased 26.6% quarter over quarter.
Strengths of the router market
The global enterprise and service provider router market declined 0.5% year-on-year in 2Q20, the major service provider segment accounting for 76.7% of revenue, down 0 , 8% and the business segment up 0.4%. From a regional perspective, the combined market for service providers and enterprise routers grew by 15.7% in Asia / Pacific (excluding Japan and China). The Japanese market grew 4.9% while the People’s Republic of China market was down 14.4% year-on-year. Revenues in Western Europe grew 3.3% year-on-year, while in Central and Eastern Europe the combined market for businesses and service providers was stable. The Middle East and Africa region grew 4.3%. In the United States, the business segment fell 4.8%, while service provider revenues rose 7.8%, giving the combined markets a 4.6% increase on an annualized basis. The Latin American market grew 1.0% on an annualized basis and the Canadian market grew 2.2% year over year.
Cisco finished 2Q21 with a 4.5% increase in overall Ethernet switch revenue and a 44.1% market share. Combined Cisco Enterprise Router and Service Provider Revenue Grows 2.4% YoY, with Enterprise Router Revenue Decreasing 9.8% and SP Revenue Increasing 10.1% . The combined market share of Cisco SPs and enterprise routers was 34.2% in the quarter.
Huawei’s Ethernet switch revenue increased 3.5% on an annualized basis, giving the company a market share of 11.1%. The combined revenue of the company’s SP and enterprise routers declined 8.5% year-over-year, giving the company a 33.4% market share.
Arista Networks saw Ethernet switch revenue increase 31.6% in 2Q21, bringing its total market share to 7.5%.
H3C Ethernet switch revenue grew 10.6% year-over-year, giving the company a 7.0% market share in the quarter. In the combined service provider and enterprise routing market, H3C’s revenue increased 32.6%, giving the company a 2.5% market share.
HPEEthernet switch revenue increased 46.4% year-over-year, giving the company a 6.7% market share.
JuniperEthernet switch revenue increased 23.3% year-over-year in 2Q21, bringing its Ethernet switch market share to 3.1%. Juniper reported a 3.9% decline in combined sales of enterprise and SP routers, bringing its market share in the router market to 9.8%.
A chart illustrating the global revenues of the top 5 Ethernet switch companies over the past five quarters is available by viewing this press release at IDC.com.
“The results in the Ethernet switch market have been generally strong across the world, indicating that most regions of the world continue to recover from the COVID-19 pandemic which has resulted in decreased spending on network infrastructure,” notes Petr Jirovsky, Research Director, IDC Networking Trackers. “The growth in the second quarter of 2021 compared to the same period in 2019 indicates strong fundamentals for the market, which is a positive sign for the future.”
The Worldwide Quarterly Ethernet Switch Tracker and the Worldwide Quarterly Router Tracker provide total market size and vendor shares for Ethernet switch and router technologies in an easy-to-use Excel pivot table format. The geographic coverage of the Ethernet Switch market and the router market includes nine major regions (United States, Canada, Latin America, People’s Republic of China, Asia / Pacific (excluding Japan and China), Japan, Western Europe, Central Europe and East, and Middle East and Africa) and 60 countries. The Ethernet switch market is further segmented by Speed (100MB, 1000MB, 10GB, 25GB, 40GB, 50GB, 100GB), Product (Managed Fixed, Unmanaged Fixed, Modular) and Layer (L2, L3, ADC). The Ethernet Switch market metric is provided in terms of vendor revenue, value, and port shipments. The router market is further divided by product (high-end, mid-range, low-end, SOHO), deployment (service provider, enterprise), connectivity (core, edge) and the metrics are revenue, value and unit shipments.
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