Ethernet switch market witnessed 1.6% decline, while router market continued to grow 14% in 2Q 2011, says IDC
The preliminary results of worldwide ethernet switch market show the market moderating after an exceptional recovery in the previous year, while the router market continued to grow especially in North America, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Networks Tracker.
The worldwide ethernet switch market witnessed a year-over-year decline of 1.6% in the second quarter of 2011 (2Q11), while the worldwide router market continued with its trajectory of continued growth with a 14.5% year over year increase.
IDC Enterprise Communications Infrastructure director Rohit Mehra said they expected growth to moderate going into 2011, and what they have seen so far in the ethernet switch market is slightly weaker than expected performance even with the 7.1% sequential growth in the second quarter.
"While average per port prices have been under pressure, they seem to stabilizing, and barring a significant macroeconomic downturn, IDC expects low to moderate growth in the remainder of 2011," Mehra said.
Revenue of 10GbE switch increased 22.6% year over year due to continued adoption in datacenters and campus core deployments.
Shipments of 10GbE port grew to 1.43 million ports in the quarter, although per port prices declined by more than 10% again, even after the previous quarter’s decline.
The worldwide router market came out stronger than expected in 2Q11 with 14.5% year-over-year growth, and the sequential 7.6% growth over the first quarter was equally impressive.
Most of this growth came from North America, specifically the US where the market increased nearly 42% year over year, while EMEA and Latin America declined.
The service provider segment, which accounted for 76.5% of the market in 2Q11, grew 9% quarter-over-quarter, while the enterprise segment grew a moderate 3.1% over the previous quarter.
From a vendor perspective, Cisco’s ethernet switch (Layer 2/3) market share in 2Q11 came in at 63.4% reflecting a slight decline, down from 64.1% in 1Q11.
Cisco’s market share is now at levels seen in 2009 when it averaged 64.4%.
On a relative basis, Cisco continues to be strong in the 10GbE segment with a 73.2% market share in 2Q11.
IDC Enterprise Communications Infrastructure Group senior research analyst Petr Jirovsky said in the broader Ethernet switching market, Gigabit Ethernet (GbE) decreased 5.5% year-over-year in spite of a 14.2% increase in port shipments.
"Gigabit Ethernet now commands a 60.4 % share of the overall Layer 2/3," Jirovsky said.