Ethernet switch revenues to approach $18 billion by ’09

Ethernet switch market revenues are forecasted to grow from $13.6 billion last year to $17.8 billion in 2009, according to a recent report by Dell’Oro Group (Redwood City, CA). According to the report, although the Ethernet switch market is maturing, with most port shipments being driven by upgrades of existing equipment, a trend toward more feature-rich, higher-speed switches will help to offset declining prices.

The report indicates major market transitions, including the widespread adoption of Gigabit Ethernet (GbE) by small and medium-sized businesses, strong growth of 10-GbE in large enterprise networks, and the adoption of more intelligent switches by all segments of the Ethernet switch market.

“One of the newer segments currently on the verge of some major changes is 10-Gigabit Ethernet,” observes Seamus Crehan, director of Ethernet switch research at Dell’Oro Group. “The introduction of new 10-GbE interfaces such as CX-4, 10GBase-T, and a serial solution for FDDI-grade multimode fiber has resulted in numerous new entrants, both component and system vendors, into the Ethernet switch market.”

The firm’s “5-Year Forecast Report” provides an overview of the Ethernet switch industry, covering manufacturers’ revenue, average selling prices, and port shipments by speed (Fast Ethernet, GbE, 10-GbE) for Layers 2-3 (both managed and unmanaged) and Layers 4-7. For more information, visit www.delloro.com.

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