APeJ Ethernet switch market grew 21% in Q4
In this article (5)
The APeJ Ethernet switch market grew 21% during the fourth quarter, with vendor revenues of $131.23 million, IDC research indicates.
Increased spending from the enterprise segment due to technology refreshes drove the overall LAN market in Q4 2016.
There was a significant increase in uptake of L3 and ADC switches in both the enterprise and service provider segments in Q4 2016. Investments in the government, education, telecom, professional services and BFSI were the key drivers for growth this quarter.
But the router market witnessed a year-on-year decline of 4% to $69.2 million.
The router market was propped up mainly by investments from the service providers for 4G rollouts and technology refreshes in Q4 2016. Increased uptake of high end router from the service provider segment and the enterprise segment drove the market.
With the evolving network environment and the huge amount of data available, adoption of advanced analytics in this area is becoming mainstream. This will enable efficient network management for improved performance. Also in 2016, there was an increased uptake of SDN deployments and NFV POCs.
Cisco continues to be dominant in Q4 2016 with a 65.74% market share, followed by Huawei and HPE. Avaya posted a significant growth in Q4 2016 mostly due to increased investments in the enterprise space.
Questions & Answers
Q.Which specific industry sectors were the primary contributors to the growth in the APeJ Ethernet switch market this quarter?
Which specific industry sectors were the primary contributors to the growth in the APeJ Ethernet switch market this quarter?
Investments made by the government, education, telecom, professional services, and BFSI sectors were identified as the main factors driving growth in the APeJ Ethernet switch market during the fourth quarter of 2016.
Q.What type of Ethernet switches saw a notable increase in adoption across both enterprise and service provider segments?
What type of Ethernet switches saw a notable increase in adoption across both enterprise and service provider segments?
There was a significant increase in the uptake of L3 (Layer 3) and ADC (Application Delivery Controller) switches. This trend was observed in both the enterprise segment and the service provider segment during Q4 2016.
Q.Despite the overall market growth, how did the router market perform in Q4 2016, and what supported its activity?
Despite the overall market growth, how did the router market perform in Q4 2016, and what supported its activity?
The router market experienced a year-on-year decline of 4% in Q4 2016, reaching $69.2 million. It was primarily supported by service provider investments for 4G rollouts and technology refreshes, alongside increased uptake of high-end routers.
Q.Beyond traditional hardware, what emerging technologies are gaining traction in network management according to the report?
Beyond traditional hardware, what emerging technologies are gaining traction in network management according to the report?
The adoption of advanced analytics for efficient network management is becoming mainstream. Also, 2016 saw an increased uptake of SDN (Software-Defined Networking) deployments and NFV (Network Functions Virtualisation) Proof of Concepts.