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Ethernet switch revenue will reach US$17.7 billion mark by in ’09: In-Stat

With Average Selling Prices (ASPs) decreasing by 19% in 2005, 10 Gigabit Ethernet switches are on a strong growth track and will continue to be in hot demand through 2010, research firm In-Stat report...


July 1, 2006  


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With Average Selling Prices (ASPs) decreasing by 19% in 2005, 10 Gigabit Ethernet switches are on a strong growth track and will continue to be in hot demand through 2010, research firm In-Stat reported today.

Though this Ethernet switch type will be a highlight, the entire market will continue to show strong results over the next several years.

Total Layer 2/3/4-7 switch manufacturers’ revenue will rise from US$14.9 billion in 2005 to US$17.7 billion in 2009.

“With growing demand for streaming video, voice over IP, high-end multimedia, medical imaging, and other bandwidth-intensive applications, Ethernet continues to evolve to remain the standard networking technology,” says Pamela Tufegdzic, In-Stat analyst.

Recent research by In-Stat found the following:

* Gigabit Ethernet layer 2/3, the middle-of-the-road switch of choice in the market today, experienced solid growth in 2005.

* Although Fast Ethernet port shipments will continue to grow very moderately, revenues for this segment will continue to decline over the forecast period due to falling ASPs.

* While Fast Ethernet has become extremely cheap, market trends show that it will not be able to support all the demands of the future.