SOURCE: Infonetics Research

June 05, 2007 14:14 ET

Ethernet switch market has seasonally down first quarter, but growth is forecast for the year

BOSTON, MA--(Marketwire - June 5, 2007) - The Ethernet switch market experienced a seasonally weak quarter, with worldwide revenue dropping 8% and port shipments dropping 5% in the first quarter of 2007, says Infonetics Research in its latest "Ethernet & Application Switches" report. Application switch sales are also down.

However, the overall market is on track for another year of double-digit port growth and high single-digit revenue growth as the migration continues to switches with greater intelligence, performance, and advanced features, says the report.

"Earlier this year, 3Com acquired the remaining stake in its joint venture with Huawei, Huawei-3Com," said Matthias Machowinski, directing analyst at Infonetics Research. "The combination of H3C and 3Com has created a much larger competitor in the Ethernet switch market -- they are now #3 for worldwide Ethernet switch revenue, behind ProCurve and Cisco, and #1 for port shipments in Asia Pacific."

Market Highlights

--  Worldwide Ethernet switch sales decreased 8% to $4 billion in 1Q07
    from 4Q06, but are up 9% from a year ago
--  Annual worldwide Ethernet and application switch sales are forecast to
    grow from $16.8 billion to $19.8 billion between 2006 and 2010
--  Over the 5 years between 2006 and 2010, a cumulative of more than $92
    billion will be spent on Ethernet and application switches
--  Cisco continues to lead in worldwide Ethernet switch revenue market
    share with 66%; ProCurve is 2nd and 3Com/H3C is now 3rd for revenue
--  Unmanaged switches account for about half of all fixed configuration
    switch port shipments in 1Q07
--  Chassis 10G ports break 1% of total ports for the first time in 1Q07
--  Roughly 2/5 of all Ethernet switch revenue comes from North America in
    1Q07, 1/3 from EMEA, and 1/5 from Asia Pacific; in the long term, the Asia
    Pacific and EMEA regions will gain share at the expense of North America
    
Infonetics' switch report tracks application switches and Ethernet switches broken out by fixed configuration (unmanaged vs. managed with a layer 2 vs. layer 3 split), chassis, and PoE. Forecasts are updated quarterly. Companies tracked include 3Com/H3C, Alcatel-Lucent, Cisco, Citrix Netscaler, D-Link, Extreme, F5, Force10, Foundry, Huawei, Linksys, NETGEAR, Nortel, ProCurve, Radware, SMC, and others.

Download report highlights at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Matthias Machowinski
    Directing Analyst, Enterprise Voice & Data
    Infonetics Research
    (781) 933-9868
    Email Contact