The worldwide Ethernet switch market (Layer 2/3) recorded revenues of $7.07 billion in the second quarter of 2019 (2Q19), an increase of 4.8% year over year, according to IDC's newly updated Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker. Worldwide total enterprise and service provider (SP) router market revenues grew 3.4% year over year in 2Q19 to $3.96 billion.
Ethernet Switch Market Highlights
- Port shipments for 100Gb switches rose 58.3% year over year to 4.4 million.
- 100Gb revenues grew 42.9% year over year in 2Q19 to $1.28 billion, making up 18.1% of the market's revenue, compared to 13.2% of the market's revenue a year earlier.
- 25Gb switches also saw impressive growth, increasing 84.8% to $364.1 million, with port shipments growing 74.5% year over year.
- 10Gb port shipments rose 2.6% year over year, to make up 27.9% of the market's revenue.
- 1Gb switches grew 6.6% year over year in port shipments, making up 40.0% of the market's total revenues.
- The Central and Eastern Europe (CEE) region grew 10.8% year over year, with Russia – the region's largest market – growing 9.2% and Poland growing 29.6%. The Middle East and Africa (MEA) region also had strong growth at 10.2%; Qatar led the region's increase with 70.3% growth. Western Europe rose 1.1%, with the Netherlands growing 18.6% within the region.
- The USA market grew 10.7% while Canada's market grew 3.8%. The Latin America region was off 1.2% after Brazil fell 8.3%.
- The Asia/Pacific (excluding Japan) (APeJ) region fell 4.2% year over year.
- China's market declined 4.7% year over year while Australia's market dropped 16.0%.
Router Market Highlights
- The worldwide enterprise and service provider router market grew 3.4% on a year-over-year basis in 2Q19, with the major service provider segment, which accounts for 75.9% of revenues, increasing 2.0% and the enterprise segment of the market growing a healthy 8.0%.
- The combined service provider and enterprise router market increased 2.7% in APeJ, with the service provider segment increasing 3.8%.
- Japan's total market grew 7.0% year over year.
- Revenues in Western Europe rose 5.2% year over year, while the CEE combined enterprise and service provider market grew 15.2% year over year.
- The MEA region was up 7.4%.
- In the USA, the enterprise segment was up 18.8%, but service provider revenues fell 6.4%, causing the total market to decline 0.8% year over year. Canada's market rose 9.2% year over year and the Latin American market grew 8.1%.
Vendor Highlights
- Cisco finished 2Q19 with an 6.8% year-over-year increase in overall Ethernet switch revenues and market share of 51.1%. In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 38.8% of the market's revenue. Cisco's campus/branch Ethernet switch revenue increased 14.3% year over year. Meanwhile, Cisco's datacenter switching revenue declined 3.2% year over year in 2Q19. Cisco's combined service provider and enterprise router revenue rose 6.6% year over year, with enterprise router revenue increasing 16.2% and SP revenues growing 1.1%. Cisco's combined SP and enterprise router market share increased to 36.8%, up from 35.7% in 2Q18.
- Huawei's Ethernet switch revenue rose 18.9% on an annualized basis, giving the company market share of 9.7%. The company's combined SP and enterprise router revenue rose 1.5% year over year with a market share of 31.1%.
- Arista Networks saw Ethernet switch revenues increase 15.4% in 2Q19, bringing its share to 7.3% of the total market, up from 6.6% a year earlier. 100Gb revenues accounted for 65.4% of the company's total revenue, indicating the company's focus on hyperscale and cloud providers and select large enterprise segments.
- HPE's Ethernet switch revenue declined 6.3% year over year, giving the company a market share of 5.8%.
- Juniper's Ethernet switch revenue declined 19.6% in 2Q19, bringing its market share to 2.9%. Juniper saw a 15.0% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.5%.
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