STAMFORD, CONN., February 23, 2005 — Driven by strong sales in Power over Ethernet (PoE) ports, worldwide Ethernet switches revenue increased by 24 percent in 2004, while Ethernet port shipments grew 22 percent year-over-year, according to Gartner, Inc. (NYSE: IT and ITB).
Worldwide Ethernet switches revenue surpassed $12 billion in 2004, while more
than 189 million Ethernet ports were shipped worldwide.
PoE ports command a premium of $40 per
port for a Fast Ethernet port and $65 for a Gigabit Ethernet port. PoE port
shipments more than tripled in 2004. Approximately 18 percent of all wiring
closet switch ports shipped in 2004 were PoE-enabled.
"Switches sold in the late 1990s
are being upgraded with more-expensive platforms," said Rachna Ahlawat,
principal analyst for Gartner's Enterprise
Networking and Communications Worldwide group. "Businesses that
have not upgraded their networking infrastructure for the last four to five
years because of limited budgets are now replacing platforms that are at the
end of their lives or are no longer supported by vendors."
Cisco
Systems continued to dominate the market in 2004, as it accounted for 75.7
percent of worldwide Ethernet switching revenue (see Table 1), and 40.6 percent
of shipments (see Table 2).
Table 1
Preliminary
Worldwide Ethernet Switching Vendor Revenue Estimates for 2004 (Millions of
Dollars)
Company
2004 Revenue
2004 Market Share (%)
2003 Revenue
2003 Market Share (%)
Growth (%)
Cisco
9,084
75.7
6,869
71.2
32.2
Nortel
463
3.9
404
4.2
14.3
Hewlett-Packard
432
3.6
310
3.2
39.4
3Com
393
3.3
402
4.2
-2.3
Foundry
312
2.6
303
3.1
2.8
Others
1,320
11
1,357
14
2.7
Total
12,004
100.0
9,645
100.0
24.5
Source: Gartner Dataquest (February 2005)
Layer 3 port shipments increased 42 percent, while vendor revenue totaled $8.3
billion in 2004, a 32 percent increase from 2003. Layer 2 vendor revenue
reached $3.7 billion in 2004, an increase of 10 percent compared to 2003.
Table 2
Preliminary Worldwide Ethernet Switching Vendor Port Shipments Estimates for 2004
(Thousands of Units)
Company
2004 Shipments
2004 Market Share (%)
2003 Shipments
2003 Market Share (%)
Growth (%)
Cisco
76,800
40.6
59,370
38.2
29.4
3Com
22,105
11.7
19,991
12.9
10.6
D-Link
18,689
9.9
17,981
11.6
3.9
Netgear
14,567
7.7
10,407
6.7
40.0
Hewlett-Packard
13,587
7.2
10,271
6.6
32.3
Others
43,576
23
37,402
24
16.5
Total
189,324
100.0
155,422
100.0
21.8
Source: Gartner Dataquest (February 2005)
Detailed market statistics on the worldwide
Ethernet Switches market are available in the Gartner report Market Share:
Ethernet Switches, Worldwide, 2004 This report can be purchased on Gartner's
Web site.
About Gartner:
Gartner, Inc. (NYSE: IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
