Market Insight

Ethernet switching market surges 12 percent year over year, fueled by data center and campus upgrades

June 28, 2018

Matthias Machowinski Matthias Machowinski Directing Analyst, Enterprise Networks and Video

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  • Worldwide Ethernet switch revenue totaled $6.1 billion in the first quarter of 2018 (Q1 2018), growing 12 percent on a year-over-year basis
  • 100GE continued to ramp, increasing more than twofold year over year and reaching 1.7 million ports in the quarter; 40GE ports were flat year over year
  • Power-over-Ethernet (PoE) port shipments grew 11 percent in Q1 2018
  • Number-one Cisco grew 7 percent year over year, number-two Huawei rose 43 percent, number-three HPE (Aruba) was up 2 percent and number-four Arista grew 40 percent

Our analysis

Ethernet switch revenue declined 10 percent sequentially in Q1 2018 due to a seasonal slowdown in demand, but the longer-term growth outlook remains positive and strengthened further during the quarter, with year-over-year growth hitting 12 percent, up from 7 percent the previous quarter.

The market enjoyed its strongest growth in seven years in 2017, and the momentum continued into 2018, fueled by continuing data center upgrades and expansion, as well as growing demand for campus gear due to improving economic conditions. The transition to 25/100GE architectures in the data center is in full swing, driving strong gains in 25GE, 100GE and white box shipments. And power over Ethernet is growing once again, a sign of strengthening campus switching demand.

Growth is well balanced around the globe and not driven by any single geography. In Q1 2018, Europe, the Middle East and Africa (EMEA) and Asia Pacific were the top growth markets, increasing 15 and 16 percent, respectively, year over year, while growth in North America remained solid at 8 percent.

IHS Markit forecasts low- to mid-single-digit growth for the Ethernet switching market from 2019 to 2022. The bright spots will be the 10GE, 25GE, 100GE, 200GE and 400GE segments, where significant growth is expected over the next few years.

Ethernet switch report synopsis

The IHS Markit quarterly Ethernet switch report provides worldwide and regional market size, vendor market share, forecasts through 2022, analysis and trends for unmanaged, web-managed and fully managed fixed and chassis switches by port speed (100ME, 1GE, 2.5GE, 10GE, 25GE, 40GE, 50GE, 100GE, 200GE, 400GE) and revenue.


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