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Infonetics: Weakness in Europe, Softness in Public Sector Braking Enterprise Switch and Router Growth

Market research firm Infonetics Research released excerpts from 2 3rd quarter (3Q12) enterprise networking market share and forecast reports: Ethernet Switches and Enterprise Routers.

ANALYST NOTE

“As we noted earlier, the double-digit growth rates in enterprise switches during the first half of the year were unlikely to continue, and that is now coming true,” notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. “Overall weakness in Europe and softness in the public sector vertical in EMEA and North America are acting as a brake on growth.”

Machowinski adds: “In the enterprise router market, unit shipments are growing at a decent pace, but substitution with lower end devices is making revenue growth hard to come by. Further, here, too, the market is being dragged down by weak demand from Europe and the public sector.”

3Q12 ETHERNET SWITCH MARKET HIGHLIGHTS

  • Ethernet switch revenue was $4.9 billion worldwide in 3Q12, down 3% both sequentially and year-over-year
  • Port growth exceeded revenue growth in 3Q12, indicating a return to increased discounting and sales of lower-value products
  • 40G Ethernet port shipments jumped 37% in 3Q12
  • Market leader Cisco’s share of global Ethernet switch revenue held steady in 3Q12 at about 64%
  • Number-3 player Juniper had a solid quarter, posting its 2nd-highest level of Ethernet switch sales

ETHERNET SWITCH REPORT SYNOPSIS

Infonetics’ quarterly Ethernet switches report provides worldwide and regional market size, vendor market share, forecasts, analysis, and trends for Ethernet switches and PoE, including ports, fixed configuration switches, and chassis switches. Companies tracked include ADTRAN, Alaxala, Alcatel-Lucent, Arista, Avaya, Brocade, Cisco, D-Link, Dell, Enterasys, Extreme, Hitachi Cable, HP, Huawei, IBM, Juniper, Linksys, LG Ericsson, NETGEAR, and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

3Q12 ENTERPRISE ROUTER MARKET HIGHLIGHTS

  • Global enterprise router sales fell 1% sequentially in 3Q12, to $854 million
  • Low-end/SOHO routers were once again the bright spot, growing by strong double-digit percentages in 3Q12 from 3Q11
  • Sales of high-end routers are down 10% from the year-ago 3rd quarter
  • Despite a small sequential bump, enterprise router revenue in Asia Pacific is down 8% year-over-year; Japan remains strong, but growth in China is slowing as exports to Europe shrink
  • Router WAN ports are slowly moving away from low-speed legacy technologies like T1 to Ethernet, broadband, and the higher-speed legacy technologies like T3, OC3, and higher

ENTERPRISE ROUTER REPORT SYNOPSIS

Infonetics’ quarterly enterprise router report provides worldwide and regional market size, vendor market share, forecasts, analysis, and trends for high-end, mid-range, branch office, and low-end/SOHO routers, including revenue and ports. Companies tracked include ADTRAN, Alcatel-Lucent, Cisco, HP, Huawei, Juniper, NEC, OneAccess, and others. To buy the report, contact Infonetics Sales: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

RECENT AND UPCOMING RESEARCH

Download Infonetics ENTERPRISE NETWORKING report highlights, tables of contents, prospectuses, market research brochure, and events brochure at http://www.infonetics.com/login.

UPCOMING INFONETICS WEBCASTS

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, [email protected], +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, [email protected], +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, [email protected], +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

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