Ethernet Switch Market Over $24B, Huawei Over $1B, in 2015

| February 25, 2016 | Reply

Sales for Arista, Brocade, Huawei, and Juniper Top the Market

According to a recent report by Dell’Oro Group, the Layer 2&3 Ethernet Switch market surpassed$24 B in 2015, with much of the market experiencing new records despite some economic headwinds. Sales for Arista, Brocade, Cisco, Huawei and Juniper topped the market with the fastest growing five-times faster than the market.

“2015 was a record year for the Ethernet Switch market, a year which saw record revenue levels for multiple quarters for campus, and data center switching. Of notable mention, Huawei exceeded $1B in revenue for the first time,” said Alan Weckel, Vice President at Dell’Oro Group. “Entering 2016, we expect to see Cloud spending being robust as data center switching begins an upgrade cycle to 25/50 Gbps. However we believe growth amongst Cloud customers will not be enough for the overall switch market to grow as robustly as it has since 2011,” added Weckel.

The report also indicates market share for vendors ranked three through five is very tight for 2015:

In addition, new Q4 data from Synergy Research Group shows that Cisco’s share of the total worldwide switching and router market was 56%, with shares in the individual segments ranging from 69% for enterprise routers to 42% for service provider routers. For the full year Cisco’s market share was also 56%, the same as it achieved in 2014. Behind Cisco the ranking of vendors was different in each of the three main segments but in aggregate Cisco is followed by Juniper, HPE, Huawei and ALU. Each had an overall switching and router market share of 6-8% in Q4. There is a reasonably long tail of other vendors but none has an overall market share in excess of 2%