Ethernet switch market revenue grew 10.8% to $7.4 bn: IDC

The latest IDC report indicated that the Ethernet switch market revenue increased 10.8 percent to $7.4 billion in the second quarter of 2021.
Ethernet switch market revenue in Q2Enterprise and service provider (SP) router market revenues declined 0.5 percent to $3.9 billion in the second quarter.

Ethernet Switch Market

The Ethernet switch market revenue increased 10.8 percent in Q2 as compared with 7.6 percent growth in the first quarter of 2021.

Enterprises made notable investments in their campus networks, while hyperscalers and other providers of cloud services continue to drive growth in high-bandwidth datacenter switching, said Brad Casemore, research vice president, Datacenter and Multicloud Networks at IDC.

Overall port shipments increased 28.4 percent, driven by strength in the non-datacenter portion of the Ethernet switch market.

Non-datacenter Ethernet switch revenues grew 17.7 percent with port shipments increasing 36 percent. The non-datacenter ethernet switch portion of the market makes up 88.6 percent of port shipments and 58.5 percent of total market revenues with the balance of revenues and port shipments in the datacenter portion of the market. In the datacenter segment, revenues rose 2.4 percent, while port shipments declined 10.6 percent.

The higher-speed segments of the Ethernet switch market achieved significant growth, driven by hyperscalers and cloud providers.

Market revenues for 200/400 GbE switches grew 132.5 percent from the first quarter to the second quarter of 2021, with port shipments more than tripling (+206.0 percent) on a sequential basis.

100GbE revenues increased 15.4 percent on an annualized basis, while port shipments rose 11.4 percent year over year. 25/50 GbE revenues increased 25.6 percent year over year while port shipments rose 1.3 percent.

Lower-speed switches saw mixed results. 10GbE port shipments rose 3.1 percent, but revenue declined 8.4 percent.

10Gb switches make up 23.4 percent of the market’s total revenue. 1GbE switches rose 33.2 percent annually in port shipments and 14.4 percent in revenue. 1GbE accounts for 35.9 percent of the total Ethernet switch market’s revenue.

2.5/5GbE revenue increased 25.3 percent sequentially from 1Q21 to in the second quarter, while port shipments rose 26.6 percent quarter over quarter.

Router Market

The enterprise and service provider router market declined 0.5 percent with the major service provider segment, which accounts for 76.7 percent of revenues, falling 0.8 percent and the enterprise segment increasing 0.4 percent.

Cisco has achieved 4.5 percent increase in overall Ethernet switch revenues and market share of 44.1 percent. Cisco’s combined service provider and enterprise router revenue grew 2.4 percent with enterprise router revenue dropping 9.8 percent and SP revenues increasing 10.1 percent. Cisco’s combined SP and enterprise router market share stands at 34.2 percent.

Huawei’s Ethernet switch revenue increased 3.5 percent. Huawei’s Ethernet switch share was 11.1 percent. Huawei’s combined SP and enterprise router revenue fell 8.5 percent. Huawei’s combined SP and enterprise router was 33.4 percent.

Arista Networks’ Ethernet switch revenues increased 31.6 percent. Arista Networks’ Ethernet switch share was 7.5 percent.

H3C’s Ethernet switch revenue grew 10.6 percent. H3C’s Ethernet switch market share was 7 percent. H3C’s revenues increased 32.6 percent in the combined service provider and enterprise routing market, giving the company 2.5 percent market share.

HPE’s Ethernet switch revenue increased 46.4 percent. HPE has Ethernet switch market share of 6.7 percent.

Juniper’s Ethernet switch revenue rose 23.3 percent. Juniper has Ethernet switch market share of 3.1 percent. Juniper faced 3.9 percent decline in combined enterprise and SP router sales. Juniper has a market share of 9.8 percent in the router market.