LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global Ethernet switch and routers market is set to reach close to USD 16 billion by 2020, growing at a CAGR of more than 10%.
This research report titled ‘Global Ethernet Switch and Routers Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
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The report categorizes the global Ethernet switch and routers market into three major end-user segments. They are:
- Carrier Ethernet
- Data center
- Enterprise and campus
Carrier Ethernet: market size and forecast
Carrier Ethernet enables telecommunications services providers to offer Ethernet services as carriers move toward packet-based and IP networks. These services include E-Line, E-LAN, and E-Tree.
The market was valued at USD 14.85 billion in 2015, and is expected to reach USD 16.83 billion by 2020. The increased demand for metro Ethernet services is also one of the major factors driving the carrier Ethernet switch and router market.
Rakesh Kumar Panda, a lead analyst at Technavio for data centers, says, “Enterprise, residential, and mobile applications require network convergence technology, which, in turn, is forcing the service providers to adopt Ethernet services. The increased use of Ethernet in metro and access network infrastructures is also leading to increased demand for Ethernet. This is a major driving force for optical network equipment vendors.”
Data center: market size and forecast
A data center Ethernet switch plays a vital role by establishing network architecture that offers higher reliability and availability services to the end-users. The switch is architecturally designed to improve Ethernet networking and management in the data center. The market is expected to reach USD 17.81 billion by 2020, growing at a CAGR of 3.19% during the forecast period.
Data centers are also among the major contributors toward the Ethernet switch and router market because of the increased construction of cloud data centers worldwide. Many CSPs are also involved in the construction of data centers worldwide to support the growing customer base in each region. “Many SMEs are also preferring to adopt cloud-based services because of the opportunity to run business operations in advanced infrastructures, which includes a highly reliable, secure, and available network infrastructure such as Ethernet switches and routers,” says Rakesh.
Enterprise and campus: market size and forecast
The market was valued at USD 8.42 billion in 2015, and is expected to reach USD 10.34 billion by 2020. The business demands of enterprises are growing because of the use of advanced technologies. Many large enterprises operate data centers, but Ethernet switches and routers are also becoming an important adoption for their branch office LAN. Many enterprises are preferring 10GbE Ethernet switches for their office deployments compared to the 1GbE, which is now common in SME and SOHO offices. Some SOHO also prefer unmanaged Ethernet switches because they are cheaper compared to managed switches, which are usually procured for large enterprise office buildings for connection to hundreds of systems.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Alcatel-Lucent
- Arista Networks
- Brocade Communications
- Cisco Systems
- Dell
- HP
- Huawei
- Juniper Networks
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About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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