Ethernet switch revenue jumps 5% to $22 billion in 2014

Ethernet switch revenue rose 5 percent to $21.7 billion in 2014 – driven by China, said Infonetics Research, now part of IHS.

The report said Ethernet switch market revenue increased 17 percent in China.

Ethernet switch revenue grew 5 percent sequentially to $5.9 billion in Q4 2014 driven by web-managed and fully-managed switches.

While 10GE switch revenue is slowing, port shipments grew 27 percent in 2014, driven by data center upgrades, server virtualization and core network build outs. The report said 40GE port shipments almost tripled in 2014, and revenue easily doubled.

100GE ports grew more than six-fold in 2014, and the arrival of 100GE on fixed switches and the introduction of low-cost optics will drive 100GE in 2015 and beyond.

Ethernet Switch Revenue in 2014

White box switches and original design manufacturers (ODMs) are seeing success with large web services and content providers like Google and Amazon.

Cisco Ethernet switch sales rose 1 percent sequentially in Q4 2014 and clinging to small year-over-year growth.

Huawei’s 2014 Ethernet switch revenue increased 72 percent as it built out its channel, increased brand awareness and expanded into Europe.

“The one weakness was 10GE, where revenue growth has essentially stalled as large data center operators migrate to 40GE and mainstream enterprises have yet to widely adopt 10GE. As a result, 40GE is the key growth segment right now, but we only expect this to last for another one to two years, after which 25GE and 100GE technology takes over,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

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