Study: Ethernet switch market shows double-digit growth

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Study: Ethernet switch market shows double-digit growth

In a newly published report, Dell’Oro Group shows that the Ethernet switch market continued to see strong demand in the second quarter 2004. Although both revenue and port shipments were nearly flat quarter over quarter, this quarter followed a strong 1Q04, in which the market grew by 16 percent. According to Dell’Oro Group, February the Ethernet switch market is on track for strong double-digit growth for the full year 2004.

“The Ethernet switch market seems to be operating at a new higher level,” said Seamus Crehan, Director of Ethernet Switch Research at Dell’Oro Group. “Market revenues in the first half of 2004 are more than 20 percent above the revenues for the same period in 2003, and port shipment volume is almost one-third higher than the first half of 2003. Much of this increase is due to pent-up demand after several years of reduced IT spending and new application requirements, such as Power-over-Ethernet.”

The Dell’Oro Group report also shows that the average sales price in many major segments, including 100 Mbps and fixed switches, increased quarter over quarter. The report concludes that this price increase is due to additional features, including Power-over-Ethernet and Layer 3 / Layer 4 capabilities.

Ethernet switch revenues for the second quarter totalled $3.13 billion. Market leader remains Cisco, followed by Nortel, HP, 3Com, Foundr, and Extreme.