Ethernet switch revenue surges 23.9% to $10 bn: IDC

The Ethernet switch market revenue grew 23.9 percent in the third quarter of 2022 to $10 billion, according to the IDC report.
Switch market share Q3 2022 IDC chartEnterprise and service provider (SP) router market revenue rose 5.6 percent to $4.1 billion in Q3.

The Ethernet switch market revenues in the non-datacenter/enterprise campus and branch segment grew 25.6 percent, while port shipments increased 25.3 percent.

The Ethernet switch market revenues in the datacenter portion of the market rose 21.7 percent, while port shipments increased 14.7 percent.

“Component shortages and supply chain disruptions have not gone away, but they relented enough in the third quarter of 2022 to enable suppliers to better meet rising demand for Ethernet switches in datacenters and enterprise campuses,” said Brad Casemore, research vice president, Cloud and Datacenter Networks at IDC.

Network infrastructure vendors have enacted various strategies to mitigate the impact of supply chain disruptions.

Revenue in the enterprise and service provider router market rose 5.6 percent. The service provider segment, which includes both communications SPs and cloud SPs, accounted for 75.3 percent of the market’s total revenues. The service provider segment of the market increased 3.8 percent. Revenues in the enterprise segment rose 11.8 percent from a year earlier.

Cisco’s Ethernet switch revenues increased 19.9 percent, giving the company a market share of 43.8 percent. Cisco’s combined service provider and enterprise router revenue grew 5.2 percent, giving the company market share of 37.0 percent.

Huawei’s Ethernet switch revenue increased 28.6 percent in 3Q22, giving the company market share of 11.1 percent. The company’s combined SP and enterprise router revenue declined 5.1 percent, resulting in a market share of 24.9 percent.

Arista Networks saw Ethernet switch revenues increased 66 percent and up 14 percent from the second to third quarters of 2022, giving the company 9.7 percent market share.

H3C’s Ethernet switch revenue increased 7.5 percent in 3Q22, giving the company a market share of 5.4 percent. In the combined service provider and enterprise routing market, H3C’s revenues declined 1.7 percent in the quarter, giving the company 2.0 percent market share.

HPE’s Ethernet switch increased 2.4 percent in the quarter, resulting in market share of 4.8 percent for 3Q22.