Menu
Ethernet market hits ‘all-time high’ as Cisco dominates

Ethernet market hits ‘all-time high’ as Cisco dominates

Tech giant holds more than 50 per cent share for 12 consecutive quarters

Chuck Robbins (CEO - Cisco)

Chuck Robbins (CEO - Cisco)

Credit: Cisco

Cisco’s domination of the ethernet switch and router markets continued during the final quarter of 2018, amid an “all-time high” for the technology segment.

According to findings from Synergy Research Group, vendor revenues passed the US$12 billion mark in the final quarter of 2018, achieving record figures in the process.

Cisco’s market share in switches and routers was 51 per cent during the period, with the tech giant maintaining over half of the market share for the last twelve quarters.

Such domination - which is showing no signs of slowing down - extends to all three main markets, with the vendor reporting share of 57 per cent, 60 per cent and 37 per cent in ethernet switches, enterprise routers and service provider routers respectively.

Behind Cisco, the ranking of vendors was different in each of the three markets but in aggregate Cisco is followed by Huawei, Nokia, Juniper Networks, Arista Networks and Hewlett Packard Enterprise.

According to data, other “active vendors” include Ericsson, Extreme Networks, H3C and ZTE.

“One other notable feature is Cisco’s ability to keep its market share at or above the 50 per cent mark,” said John Dinsdale, chief analyst at Synergy Research Group.

“Huawei’s market share keeps on nudging upwards and Arista has posed a big threat in large, high-speed switches, but Cisco is not being shifted from its market leadership position.”

Such growth comes following a full year vendor revenue total in excess of US$44 billion, up four per cent from 2017.

Specifically, ethernet switches, enterprise routers and service provider routers all saw double digit growth during the fourth quarter, relative to 2017.

For the full year the router markets were relatively flat compared to 2017 while spending on ethernet switches grew eight per cent.

“When you look at the overall Ethernet switch and router market the most notable feature is actually its stability,” Dinsdale added. “Despite a variety of challenges this large market keeps expanding slowly year after year. Moreover, we are not expecting this trend to change any time soon.”

Credit: Synergy Research Group

Delving deeper, ethernet switching represents the largest of the three segments accounting for 59 per cent of the total fourth quarter market, while also recording the highest growth rate.

“While demand for GbE switches continues to grow, the most notable feature of the market is the rapid deployment of 100 GbE and 25 GbE fixed switches,” Dinsdale explained.

Within the quarter, Dinsdale said revenues from both enterprise routers and service provider routers saw a “strong uptick”, helping to balance out declines seen in the first three quarters.

Full-year revenues for enterprise routers were marginally up on 2017 while revenues from service provider routers were marginally down.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ciscoEthernetjuniper networksHuaweiArista NetworksHewlett Packard Enterprise

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments