Analyst sees 10 Gigabit Ethernet peak before 2018; 100 GE 'to become mainstream'

Dell'Oro Group expects the Ethernet switch market to approach $25 billion in 2018.

Networking and telecommunications industries analyst Dell’Oro Group expects the Layer 2-3 Ethernet Switch market to approach $25 billion in 2018.

“The Ethernet Switch market remains robust, but will become increasingly dependent on the data center for growth," explains Alan Weckel, vice president of Ethernet switch market research at Dell’Oro Group. "As employees rely on mobile devices and WLAN connectivity more than ever and campus switch revenues continue to decline, the data center will become the main driver over the next several years.”

The analyst's new report also indicates that 25 Gigabit Ethernet will be a major driver for growth in data center switching and will help propel 100 Gigabit Ethernet volumes. Given the move to higher speeds, the report also indicates that 10 Gigabit Ethernet modular port shipments will be declining as the data center and campus core market moves towards higher speeds.

“Two major upgrade cycles in the data center will be happening; the first being the enterprise migration towards 10 Gigabit Ethernet which we anticipate starting in 2015," continues Weckel. "The second, carrying greater implications for future growth in switching, is the Cloud upgrade to 25 Gigabit Ethernet which should begin by 2016. Pricing on 25 Gigabit Ethernet and the associated 100 Gigabit Ethernet ports in the data center will be one of the largest growth factors overall as we look towards the second half of the decade,” he concludes.

The Dell’Oro Group's Ethernet Switch Quarterly Report offers a complete overview of the Ethernet Switch industry with tables covering manufacturers’ revenue, average selling prices, and port/unit shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 40 Gigabit Ethernet, 100 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged).

To purchase the report, contact Julie Learmond-Criqui, call +1.650.622.9400 x244 or email

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