IDC from the market: growth for Ethernet switches, decline for routers

Europe Fiber Network Operators Shrug Off Pandemic to Seek Buyers | Data  Center Knowledge

They showed a very mixed picture in Europe.

The Ethernet switch market grew 10.8 percent year-over-year, while the router market declined 0.5 percent in the second quarter of 2021. The global Ethernet switch market generated $ 7.4 billion in revenue during this period. Meanwhile, revenue from the global enterprise and service (SP) router market fell to $ 3.9 billion, IDC reported.

The 10.8 percent annual growth in the Ethernet switch market is based on 7.6 percent growth in the first quarter of 2021. In the first half, revenue from Ethernet switches increased 9.3 percent compared to 2020. Compared to the second quarter of 2019, before the COVID-19 epidemic, revenues increased by 3.8 percent.

Geographically, the market for Ethernet switches performed strongly in most parts of the world during the period under review, but showed a mixed picture in Europe. The Western European market grew by 23.1 percent year-over-year, driven by France’s 39.3 percent growth. The Central and Eastern European market was essentially stagnant, growing 0.5 percent, and Russia declined 4.8 percent.

In Asia-Pacific, revenues in the People’s Republic of China grew by 11.6 percent year-over-year, while the Japanese market grew by 8.3 percent. In the Asia-Pacific region more broadly, excluding China and Japan, the market grew 20.5 percent quarter-over-quarter, supported by the 58.2 percent annual growth in the Singapore market.

In the Middle East and Africa, the market grew by 2.6 percent compared to the previous year. In the U.S., revenues in the U.S. rose 6.2 percent, Canada’s market fell 1.0 percent, Latin America’s rose 8.1 percent from a year earlier, Mexico’s rose 15.8 percent from a year earlier.

“The global Ethernet switch market started strongly in 2021 as macroeconomic conditions improved and more and more organizations around the world demonstrated their resilience and digital resilience to the rolling challenges posed by the COVID-19 epidemic. Companies have made significant investments on their campuses, while hyperscalers and other cloud providers continue to drive the growth of high-bandwidth data center connections, ”said Brad Casemore, vice president of research at IDC Datacenter and Multicloud Networks.

The global enterprise and service router market declined 0.5 percent year-over-year in the second quarter. The large service segment, which accounts for 76.7 percent of revenue, declined 0.8 percent and the corporate segment grew 0.4 percent. Regionally, the combined market for service and enterprise routers grew 15.7 percent in Asia-Pacific (excluding Japan and China). The Japanese market expanded by 4.9 percent, while the market of the People’s Republic of China decreased by 14.4 percent compared to the previous year. In Western Europe, revenues increased 3.3 percent year-over-year, while in Central and Eastern Europe, the corporate and service markets combined stagnated. The Middle East and Africa region grew by 4.3 percent. In the U.S., the corporate segment declined 4.8 percent, while service revenue grew 7.8 percent, bringing the combined markets to 4.6 percent year-over-year growth. The Latin American market grew 1.0 percent year-over-year and the Canadian market 2.2 percent.

Global ethernet switch market projection:

Global Ethernet Switch Market – Industry Analysis (2020-2027)