Switching market rose 3.5% YoY in 4Q16
According to market research firm IDC, the worldwide Ethernet switch market rose 3.5% YoY (year-over-year) to $6.7 billion. In 2016, this market rose 2.4% YoY to $24.4 billion in revenue. Countries from EMEA (Europe, Middle East, and Africa) drove revenue last year. The UAE (United Arab Emirates) saw switching sales rise 34.2% YoY, whereas revenue generated from Japan rose over 10% in 4Q16. Sales from developing economies such as India rose 24% as well in 4Q16. Developed countries in Western Europe saw switching revenue rise 8.2% YoY in 4Q16 and only 0.8% in 2016.
Rohit Mehra, vice president of infrastructure at IDC, stated, “As the Ethernet switching market reaches a greater level of maturity from 1GbE to 10GbE, it is increasingly characterized by customers moving more quickly to higher speeds at lower port costs, especially in the datacenter.”
Cisco leads the switching market with a share of 55.6%
Hewlett Packard Enterprise (HPE) has a 5% market share in the Switching segment, down from 5.5% in 3Q16. HPE’s revenue fell 2.2% YoY in 4Q16. Cisco Systems (CSCO) is the market leader with a share of 55.6% at the end of 4Q16. Other major players in this market include tech (QQQ) firms like Juniper Networks (JNPR), Arista Networks, and China’s (FXI) Huawei.
Huawei and Arista are quickly gaining traction in the networking space. While Arista’s switching revenue rose 33% YoY, Huawei’s revenue rose 68% YoY in 4Q16.