650 Group: Ethernet switch market dropped 10% YoY in Q1

The Ethernet Switch Market declined nearly 10% Y/Y on weak campus and data center results in 1Q20, declining to approximately $7 billion, according to a newly released report from 650 Group. The report also indicated significant regional differences amongst vendors, as well as aggressive ASP fluctuations in the market.

“The Ethernet Switch market contracted in the expected regions and verticals in 1Q20,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Supply chain constraints in factories and components remain entering the last month of 2Q20. Certain component shortages will remain well into 2021 as vendors prioritize customers and products throughout the year.  Our vertical analysis of the campus and data center Ethernet switching markets indicates a different recovery rate and use of technology as the market begins to rebound in 2H20.  Digital transformation and the use of cloud platforms will be critical to companies going forward, especially as the digital divide increases across regions and customers.”

The 650 Group Quarterly Ethernet Switch report also indicates what impact the trade war is having on campus suppliers and the surge in 25 Gbps port shipments from H3C and Huawei.
The report highlights how campus Ethernet switching outperformed data center switching with new products from Arista, Cisco, Extreme Networks, and Juniper all ramping during the quarter.

https://www.650group.com/press-releases/ethernet-switch-market-contracts-to-7b-in-1q20-according-to-650-group