The global Ethernet switch market exhibited mixed growth patterns in 2024, with a strong fourth quarter but an overall decline for the full year.
Revenues of Ethernet switch market reached $12.0 billion in 4Q24, marking a 13.3 percent increase.
Full-year revenues of Ethernet switch market fell 5.4 percent to $41.8 billion.
The datacenter segment was a major growth driver for Ethernet switch market, surging 32.1 percent in the fourth quarter and 15.1 percent for the year.
The growth in the datacenter segment of the Ethernet switch market was fueled by increasing adoption of high-speed 200/400 GbE switches, which saw 147.5 percent rise in 4Q24 and a 25.9 percent sequential increase from the third to the fourth quarter. ODM Direct sales played a growing role in the datacenter segment, rising 67.5 percent in 4Q24 and accounting for 20.5 percent of datacenter switch revenues.
In contrast, the non-datacenter segment, which serves enterprise campus and branch deployments, struggled throughout the year. While the non-datacenter segment declined 1.2 percent in 4Q24 and 20.0 percent for the full year, there was a 9.6 percent sequential increase from Q3 to Q4.
The decline in the non-datacenter segment was largely due to difficult comparisons with a historically strong 2023, when backlog-driven shipments led to inflated revenues. The 1GbE switch category, a dominant force in the non-datacenter market, showed a slight 2.0 percent increase in 4Q24 but dropped 22.9 percent for the full year.
Regional performance varied, with the United States experiencing a 16.6 percent growth in 4Q24 but a 4.9 percent decline for the year. The U.S. datacenter Ethernet switch market was particularly strong, growing 41.3 percent in the fourth quarter and 18.9 percent annually.
In Europe, the Middle East, and Africa, 4Q24 revenues grew 12.3 percent, but full-year revenues dropped 11.1 percent. Germany, the region’s largest market, saw an 8.5 percent increase in 4Q24.
The Asia Pacific market recorded a 9.6 percent rise in the fourth quarter, with full-year revenues remaining flat at a 0.4 percent decline. China’s market grew 8.9 percent in 4Q24 and 4.5 percent for the year, standing out as one of the few regions with positive full-year growth, Brandon Butler, senior research manager, Enterprise Networks, IDC, said in its latest report.
Ethernet switch vendors
In the Ethernet switch market, Arista Networks stood out with a strong performance, growing 22.4 percent YoY in 4Q24 and 16.6 percent for the full year, capturing a 13.0 percent market share.
Huawei also saw growth in its Ethernet switch business, increasing 8.2 percent in 4Q24 and 5.3 percent annually, securing a 10.5 percent market share.
HPE struggled, with Ethernet switch revenues declining 24.5 percent in 4Q24 and 26.1 percent for the full year, reducing its market share to 5.8 percent.
H3C’s Ethernet switch revenue rose 7.6 percent YoY in 4Q24 but ended the year with a slight 0.9 percent decline, holding a 4.4 percent share in Ethernet switch market.
Baburajan K
