Ethernet Switch and Router Trackers Show Modest, Continued Growth for Q4

The worldwide ethernet switch market (layer 2/3) recorded USD 6.9 billion in revenue in the fourth quarter of 2017 (4Q17), an increase of 3.2 percent year-over-year (Y-o-Y). For the full year 2017, the market recorded more than USD 25.7 billion in revenue for a Y-o-Y growth rate of 5.4 percent, estimates IDC. Meanwhile, the worldwide total enterprise and service provider (SP) router market recorded just under USD 4.0 billion in revenue in 4Q17, increasing 2.4 percent on a Y-o-Y basis. For the full year 2017, the router market finished at USD 15.2 billion, an increase of 4.0 percent over 2016.

From a geographic perspective, the 4Q17 ethernet switch market recorded its strongest growth in the Asia-Pacific (excluding Japan) (APeJ) region, which increased 11.1 percent Y-o-Y in 4Q17 and was up 11.3 percent for the full year 2017. The China market, which makes up the largest share of the regional total, crossed the USD 1 billion mark for the first time in a single quarter after growing 17.8 percent Y-o-Y in 4Q17 and 16.1 percent Y-o-Y for the full year 2017. Indonesia, although being a smaller market, saw robust growth: 34.1 percent sequentially from the third quarter of 2017 to 4Q17; 19.7 percent for the quarter on a Y-o-Y basis; and 12.1 percent for the full year 2017.

The Western Europe region grew 2.8 percent Y-o-Y in 4Q17 and 6.5 percent for the full year 2017. Germany saw especially strong results in 4Q17 after growing 7.8 percent Y-o-Y and 10.8 percent quarter over quarter. Germany was also up 11.2 percent Y-o-Y for the full year 2017. The Middle East and Africa (MEA) region had mixed results in 4Q17, growing 12.3 percent sequentially, but declining by 0.8 percent Y-o-Y. The region finished the year up 5.2 percent compared to 2016. On a country level, the standout performer in MEA was the United Arab Emirates (UAE), which grew 16.7 percent Y-o-Y and 19.2 percent for the full year 2017. Latin America declined 2.4 percent Y-o-Y but was nearly flat for the full year, growing just 0.3 percent. The United States, which is the largest worldwide market, was down 5.3 percent quarter over quarter in 4Q17, but up 0.6 percent Y-o-Y. For the full year 2017, the United States of America increased 2.9 percent Y-o-Y.