New 2.5G and 25G speeds will boost Ethernet switch market says Infonetics

Market research firm Infonetics Research says that global Ethernet switch revenues grew 4% sequentially in third quarter 2014 (3Q14), to reach $5.6 billion, while year-over year growth stood at 5%, thanks to demand from the public and financial services sectors.

The numbers come from the firm’s 3Q14 "Ethernet Switches" report, which tracks unmanaged, Web-managed, and fully managed fixed and chassis switches by port speed, from Fast Ethernet (100 Mbps), through Gigabit Ethernet (1GbE), 10GbE, and 40GbE to 100GbE.

"Recent momentum in the Ethernet switch market carried through to the third quarter, and 2014 is on track for record revenue," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. "Looking ahead, we expect growth to accelerate, thanks in part to the introduction of 2.5G and 25G Ethernet. These new Ethernet speeds will be a premium offering relative to 1GbE and 10GbE to address bandwidth constraints in data center and campus networks, and should provide an additional boost to revenue."

The mix in the market has changed over the year, with Web-managed and fully managed fixed switches notching up double-digit year-over-year revenue growth in 3Q14. Unmanaged and chassis switches declined, Machowinski says.

Shipments of 10GbE ports were up 26% year-over-year in 3Q14; however, they fell short of the market research firm’s expectations at this stage in the adoption cycle. That’s because 40GbE is taking over from 10GbE as the new high-growth market segment. Infonetics found that 40GbE port shipments more than doubled year-over-year in 3Q14, with growth especially strong in the white box market.

The 100GbE switch market "took a breather" after a strong 2Q, but the arrival of 100GbE on fixed switches and the introduction of lower-cost optics will drive growth in 2015, Infonetics asserts (see "100 Gigabit Ethernet optical transceiver market set for growth says Infonetics").

Infonetics' quarterly Ethernet switch report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for Ethernet switches, including: revenue and ports by port speed; unmanaged, Web-managed, and fully managed switches; fixed configuration and chassis switches; and power over Ethernet (PoE).

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