On September 9, 2022, IDC released the Worldwide Ethernet Switches Quarterly Tracker Report and Worldwide Routers Quarterly Tracker Report.
The global Ethernet switch market grew 14.6% year-over-year in the second quarter of 2022, reaching $8.5 billion (58,817 million RMB) in revenue.
The global enterprise router and service provider (SP) router market generated total revenue of USD 4.2 billion (CNY 29,063 million) in the second quarter of 2022, up 6.3% year-on-year.
Highlights of the Ethernet switch market
The Ethernet switch market grew at an annualized rate of 14.6% in the first quarter of 2022, building on the growth momentum of the first quarter of 2022, when the market grew by 12.7% year-on-year. The market grew by 13.7% in the first half of 2022 compared to the first half of 2021.
The non-data center segment of the Ethernet switch market, which includes Ethernet switches deployed on enterprise campuses and branch offices, grew 5.8 percent year-over-year in revenue, while port shipments declined 0.4 percent year-over-year. revenue in the data center segment jumped 26.9 percent year-over-year in the second quarter of 2022, and port shipments grew 11.7 percent.
The high-speed switch segment of the Ethernet switch market continues to witness significant growth, driven by a combination of hyperscale players and cloud providers. From Q1 to Q2 2022, market revenue for 200/400 GbE switches jumped 67.4% YoY and port shipments jumped 89.5%. 100 GbE switch revenue grew 28.3% YoY and port shipments grew 23.4% YoY in Q2 2022; 100 GbE switch revenue accounted for 26.2% of total market revenue. Revenue from 25/50 GbE switches grew 22.1 percent year-over-year in the second quarter of 2022, while port shipments grew 5.4 percent year-over-year.
Lower-speed switches are a more mature segment of the market with more moderate growth. 1 GbE switch market revenue grew 2.6 percent year-over-year in the second quarter of 2022, while port shipments grew 1.6 percent. Revenue from 10GbE switches declined 1.3 percent in the quarter, while port shipments grew 2.1 percent year-over-year. 2.5/5GbE switches (also known as multi-gigabit Ethernet switches) grew at an annualized rate of 41.2 percent in revenue, growing 6.0 percent sequentially from Q1 2022 to Q2 202 2. Port shipments jumped 58.7 percent year-over-year, but grew only 0.8 percent sequentially.
The Ethernet switch market maintained its strong growth momentum in the second quarter of 2022, driven by a number of factors," said Brad Casemore, vice president of cloud and data center networking research at IDC. In the data center, hyperscale operators and other cloud service providers are adding switches to keep pace with strong customer demand for popular applications and services. On the campus side, enterprises seeking digital transformation and resiliency continue to drive growth. Impressively, this growth is being achieved in the face of headwinds such as supply chain disruptions, rising inflation and the protracted Russia-Ukraine war. The Ethernet switch market has performed well in recent quarters, demonstrating the importance that network connectivity and digital infrastructure have in today's digital-first business world."
Regionally, the Ethernet switch market has witnessed growth in most regions of the world.
In Asia Pacific, which excludes Japan and China, the market grew 14.0 percent year-over-year; while in China, the market grew 9.3 percent; and in Japan, the market declined 6.4 percent. The U.S. market jumped 23.3 percent year-over-year, while the Canadian market grew 10.4 percent and the Latin American market grew 18.8 percent. The Western European market grew 14.8% annually, while the Middle East and Africa region market grew 1.7%. The CEE market declined 12.5% and the Russian market plunged 89.2% year-over-year.
Highlights of the router market
The service provider segment, which includes communication service providers and cloud service providers, accounted for 73.8% of the total router market revenue, and the segment grew 2.2%. The enterprise segment accounted for the remaining share of total revenue, growing 20.2% year-over-year.
Regionally, in Asia Pacific excluding Japan and China, the overall service provider and enterprise router market grew by 3.4% in the second quarter of 2022. The Japan market declined 6.9%, while the China market declined 1.8%. Revenues in Western Europe grew 4.2 percent year-over-year, while revenues in Central and Eastern Europe plunged 25.2 percent year-over-year. Middle East Africa grew 9.3 percent. In the U.S., the enterprise segment surged 36.6 percent, while the service provider segment saw revenue growth of 16.8 percent, resulting in an annualized growth rate of 21.3 percent for the overall market. The Latin American market grew at an annualized rate of 11.0%, while the Canadian market declined 1.1%.
Vendor Highlights
Cisco's Ethernet switch revenue grew 10.2 percent year-over-year in the second quarter of 2022, giving the company a 42.3 percent market share. Meanwhile, Cisco's total service provider and enterprise router revenue grew 4.1 percent in the quarter. cisco's share of the overall service provider and enterprise router market was 33.2 percent in the second quarter of 2022.
Huawei's Ethernet switch revenue grew 9.4 percent in the second quarter of 2022, giving the company a 10.6 percent market share. Huawei's total service provider and enterprise router revenue grew 5.3 percent year-over-year, with a 32.8 percent market share.
Arista Networks' Ethernet switch revenue jumped 55.1 percent in 2Q2022, and the company had a 10.1 percent market share in the second quarter.
Xinhuasan's Ethernet switch revenue grew 4.8% in 2Q2022, and the company had a 6.3% market share in the second quarter. In the overall service provider and enterprise router market, Xinhuasan's revenue grew 5.6 percent in the quarter, and the company had a 2.5 percent market share in the second quarter of 2022.
HPE's Ethernet switch revenue declined 5.5 percent in the second quarter, and the company had a 5.5 percent market share in the quarter.
