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Ethernet Switch Revenue to Reach USD 17.7 Mln in 2009: Study

By Sophia Mayengbam

10 Gigabit Ethernet switches are on a strong growth track with Average Selling Prices (ASPs) decreasing by 19 percent in 2005. Information Technology research firm In-Stat report has revealed that the growth rate will continue to grow trough 2010.

The study said that through this Ethernet Switch type will be a highlight, the entire Ethernet switch market will continue to show strong results over the next several years. Total Layer 2/3/4-7 switch manufacturers' revenue will rise from USD 14.9 million in 2005 to USD 17.7 million 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.

The research, "Ethernet Switch Market Analysis" said that 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, In-Stat stated.
 
In-Stat predicts that while Fast Ethernet has become extremely cheap, market trends show that it will not be able to support all the demands of the future.

This report covers the entire Ethernet switch market with detailed market shares and forecasts through 2009 for major Ethernet switch market segments, including Layer 2, 3, 2/3, 4-7, and 2/3/4-7 - Managed - Fixed vs. Modular - Fast Ethernet, GigE, and 10 GigE.