Ethernet switch market to tally $17.7 billion in 2009

With average selling prices (ASPs) decreasing by 19% in 2005, 10-Gbit Ethernet (10-GbE) switches are on a strong growth track and will continue to be in demand through 2010, contends a new report from In-Stat. Though the 10-GbE switch segment will be a highlight, the entire Ethernet switch market will continue to show strong results over the next several years, say analysts. Total Layer 2/3/4-7 switch manufacturers’ revenue is expected to rise from $14.9 billion in 2005 to $17.7 billion in 2009.

“With growing demand for streaming video, voice over IP, high-end multimedia, medical imaging, and other bandwidth-intensive applications, Ethernet continues to evolve to remain the standard networking technology,” notes In-Stat analyst Pamela Tufegdzic.

The report also found the ­following:

• Gigabit Ethernet Layer 2/3, today’s middle-of-the-road switch of choice, experienced solid growth in 2005.

• Although Fast Ethernet port shipments will continue to grow very moderately, revenues for this segment will continue to decline over the forecast period due to falling ASPs.

• While Fast Ethernet has become extremely inexpensive, market trends show that it will not be able to support all the demands of the future.

Additional information about the report, “Ethernet Switch Market Analysis,” can be found on In-Stat’s web site at www.in-stat.com.

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