The worldwide Ethernet switch market grew 12,7% year over year in the first quarter of 2022 (1Q22) with revenues of $7,6-billion. The total worldwide enterprise and service provider (SP) router market recorded $3,6-billion in revenue in 1Q22, a 3,5% increase year over year.
These growth rates are according to results published in the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker.
Ethernet switch market highlights
IDC’s Worldwide Ethernet Switch Tracker segments the market by two major categories: datacentre switching and non-datacentre switching.
Non-datacentre switching includes Ethernet switch deployments in the enterprise campus and branch. Revenues in this segment make up 53,7% of the total market and grew 6,4% year over year in 1Q22, while port shipments increased 4,7% year over year.
Revenues for the datacentre portion of the Ethernet switch market make up the balance of the total market. Revenues in the datacenter segment rose 20,8% on an annual basis in 1Q22, while port shipments increased 3,7%.
The higher-speed segments of the Ethernet switch market continue to see significant growth, driven by hyperscalers and cloud providers.
Market revenues for 200/400 GbE switches grew 35,6% from the fourth quarter of 2021 to the first quarter of 2022, with port shipments increasing 78,6% on a sequential basis. 100GbE revenues increased 22,4% year over year in 1Q22, while port shipments rose 26,1% year over year. 100GbE switch sales account for 26,7% of the market’s total revenues. 25/50 GbE revenues increased 38% compared to the first quarter of 2021 while port shipments declined 5,1%.
Lower-speed switches, a more mature part of the market, saw moderate growth. 1GbE switches make up 31,4% of the total market’s revenues and revenues in this speed rose 1,2% year over year in 1Q22 with port shipments increasing 4,3%. 10GbE, which make up 19,5% of the total market’s revenues, declined 5,7% in the quarter, while port shipments grew 5,7% year over year. 2.5/5GbE switch revenue – also known as multi-gigabit Ethernet switches – were flat, with 0,5% change from 4Q21 to 1Q22, but port shipments rose 21,5% sequentially.
“Despite persistent and manifold supply-chain challenges – compounded by macroeconomic concerns and geopolitical conflicts and uncertainty – the worldwide Ethernet switch market demonstrated notable resilience and robustness in the first quarter of 2022,” says Brad Casemore, research vice-president, Datacentre and Multicloud Networking at IDC.
“Organisations across geographies and industries recognize that the network is the digital nervous system of modern IT infrastructure, and they are investing accordingly. The continued expansion of datacenter switching capacity by hyperscalers and other major cloud providers, as well as a healthy refresh cycle in the enterprise campus and branch, has provided a steady impetus for growth.”
Router market highlights
Total revenue in the worldwide enterprise and service provider router market increased 3,5% year over year in 1Q22. The service provider segment, which includes both communications SPs and cloud SPs, accounted for 78,4% of revenues and this segment of the market increased 4.5% year over year. Revenues in the enterprise segment were essentially flat with a 0,1% increase from a year earlier.
Cisco‘s Ethernet switch revenues increased 3,8% year over year in 1Q22, giving the company market share of 45,4%. Meanwhile, Cisco’s combined service provider and enterprise router revenue grew 1,3% in the quarter. Cisco’s combined SP and enterprise router market share stood at 36,6% in 1Q22.
Huawei’s Ethernet switch revenue increased 7,2% in 1Q22, giving the company market share of 7,5%. The company’s combined SP and enterprise router revenue increased 6,7% year over year, resulting in a market share of 26,2%.
Arista Networks saw Ethernet switch revenues increase 33,5% in 1Q22, giving the company 9,3% market share in the quarter.
H3C’s Ethernet switch revenue increased 25,3% in 1Q22, giving the company market share of 5,6%. In the combined service provider and enterprise routing market, H3C’s revenues rose 9,4% in the quarter, giving the company 2.0% market share for 2021.
HPE‘s Ethernet switch revenue increased11,4% in the quarter, resulting in market share of 6% in the quarter.