Ethernet switch market to crash 20 per cent

A report released this week has predicted the largest fall in the Ethernet switch market in eight years.

Ethernet globe

The ethernet switch market will dive by almost 20 per cent this year, according to a new report.

Networking analyst firm the Dell'Oro Group has predicted this will be the worst year for the market since 2001, with revenues falling from $19.5 billion in 2008 to $15.8 billion a decline of 19 per cent.

Alan Weckel, director of Ethernet switch market research at Dell'Oro, said: "Given the severity of the decline during the first quarter of 2009, it will be difficult for the market to rebound quickly to the revenue and port levels we saw in 2008."

However, the report claimed the market will make a comeback, albeit a slow one, thanks to growth in data centres and demands for 10GB ethernet.

Weckel said: "We believe that the data centre will be one of the largest drivers for growth beyond 2009, as the market is expected to begin expanding again in 2010. However, it will be difficult for the market to return to the robust growth rates it enjoyed over the past five years."

The report also said the moves made by networking vendors, such as Cisco going into the server market and IBM taking a place in the ethernet switch market, as being indicative of a more "holistic" approach to product portfolios, ensuring data centres continue to be a strong area for growth.

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