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Where Does Juniper Stand in the Ethernet Switch Market?

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Worldwide Ethernet switch market

The worldwide Ethernet switch market exceeded $6.4 billion in revenue in 4Q15. Revenues rose 3.2% YoY (year-over-year) and 5.1% quarter-over-quarter in 4Q15. For 2015, the market rose 1.9% YoY. The worldwide total enterprise and service provider router market also rose in 4Q15. It rose 4% YoY and 9.9% quarter-over-quarter. For 2015, the router market rose 5.6% YoY.

The Asia-Pacific region led growth in the Ethernet switch market, with a YoY rise of 10% and a quarter-over-quarter rise of 14.4%. Singapore and South Korea rose 32% and 19.7%, respectively, YoY in 4Q15. North America also recorded a strong rise of 8% YoY. The United States was the primary driver of revenues, with a rise of 8.7% YoY and 7% quarter-over-quarter.

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Substantial YoY growth for Juniper

According to market research company International Data Corporation, Juniper Networks (JNPR) had another record quarter in the Ethernet switching segment in 4Q15. Its revenues rose 32% YoY and 5.8% quarter-over-quarter in 4Q15 to $243.8 million. In 2015, Juniper’s revenues rose 16.7% in the segment.

In the router segment, Juniper’s revenues rose 18.8% YoY and 4.9% quarter-over-quarter in 4Q15. In 2015, Juniper’s revenues rose 3.4% YoY.

As the chart above shows, Cisco (CSCO) continued to lead the market with a share of 59.8%, followed by Hewlett-Packard Enterprise (HPE) at 9.3%, China’s (FXI) Huawei at 6.1%, and Arista Networks (ANET) at 3.4%.

The Ethernet switching segment accounts for 16% of Juniper’s revenues, whereas the routing business segment accounts for 48% of its total revenues. The Americas account for 58% of Juniper’s revenues, followed by EMEA (Europe, the Middle East, and Africa) at 27% and the Asia-Pacific region at 15%.

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