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Oz Ethernet Switch Market Jumps, Routers Dive

The Australian Ethernet switch market in Australia grew by 10.1 percent in 2018, delivering revenue valued at A$857 million, the market’s highest point in five years, according to a new IDC report.

This was largely due to increased shipments of high-speed ports at 25, 50 and 100Gbps, IDC says. Demand was mainly driven by enterprise spending on private and public cloud services.

Cisco was the market leader with 65 percent of the action, followed by HPE Networks (9.5pc), Juniper Networks (3.8pc), and Arista on 3.4pc.

However, it was a different story in the router market, which was negatively impacted by a reduction of service provider spending, as they prepared to upgrade to 5G mobile technology. Total revenue in this arena dropped some 6.2pc to around A$459 million.

IDC attributed the downturn to service providers cutting back spending as they prepare to upgrade to 5G technology.

The wireless local area network (WLAN) market generated revenue of $260.96 million in 2018, a decline of 11.9 percent year-on-year. Cisco was again top dog, followed by Netgear, HPe, and Riverbed.

IDC says it expects stagnation in these markets to be temporary. “Mobile networks’ upgrade to 5G and wireless LAN access points refresh to the 802.11ax standard will drive demand and once again, drive positive growth back to the networking infrastructure market,” said Ahmar Karimullah, IDC Australia’s A/NZ networking infrastructure market analyst

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