Date: 06/03/2011

Ethernet, WLAN, and enterprise router marker research highlights

Infonetics Research has recently released vendor market share rankings and market forecasts in 4th-quarter 2010 for Ethernet Switches, Wireless LAN Equipment and WiFi Phones, and Enterprise Routers.

Here below are the market statistics and trends shared by Infonetics

Ethernet market:
4Q10 Ethernet switch revenue inched up 1% from 3Q10, enough to set a new quarterly sales record of $4.79 billion
Sales also set a new annual high of $18.8 billion in 2010, nearly $1 billion higher than the pre-recession high in 2008
In the next few quarters, 1G ports will begin out-shipping Fast Ethernet for the first time, an important inflection point
Juniper was the shining star in 4Q10, with a 21% sequential jump in Ethernet switch revenue, driven by strong data center sales
Juniper doubled its Ethernet switch sales in 2010, moving into a solid #3 position
Cisco, the market leader by far, lost market share during the recession, but managed to gain it all back, with revenue share up a full point in 2010 (70.4%) over pre-recession 2008


WLAN equipment market analysis:
The worldwide WLAN equipment market grew 10% in 4Q10 over 3Q10, to $769 million, continuing a trend of positive growth
WLAN revenue is up 28% from the year-ago quarter (4Q09)
For the year, WLAN sales are up 23% to $2.7 billion, driven by the fundamental trend towards enterprise mobility and wired LAN and WLAN convergence
For the first time, 802.11n APs (access points) outnumbered legacy a/b/g APs in 4Q10, a shift that is helping support ASPs across most categories
In 4Q10, Cisco maintains its lead in worldwide WLAN equipment revenue (excluding WiFi phones), followed by Aruba

Enterprise Router market:
Worldwide enterprise router revenue rose 7% to $920 million in 4Q10 over 3Q10
However, unit sales were down both sequentially and from a year ago, reflecting the slow pace at which businesses are expanding despite the fact that the economy is returning to health
For the year, the enterprise router market grew 11% to $3.4 billion in 2010, disappointing considering the market stood at $4.3 billion pre-recession in 2008, and in sharp contrast to the record-breaking sales of Ethernet switches and wireless LAN equipment
HP finished strong in 4Q10, with enterprise router sales up more than 50% from 3Q10
Cisco's 2010 enterprise router revenue is off 18% from 2008, but still, Cisco managed to pick up market share (up 1.7 points to 78.2% in 2010) as other vendors declined

"Wired and wireless Ethernet switching sales took a hit during the recession, but now they're back stronger than ever. The spring-back is partially due to pent-up demand and the need to upgrade networks to eliminate congestion. But another factor at play is the realization by many enterprises that building out their network coverage, including mobile access, improves communication among employees and access to IT applications, and that has a profound effect on productivity and competitiveness," notes Matthias Machowinski, Infonetics Research's directing analyst for enterprise networks and video.

Infonetics see a record year ahead for Ethernet switching; enterprise routers up big in US, China, Japan Wireless LAN equipment market up 14% in 3Q10, led by N. America and EMEA regions.