Gartner Research

Forecast Analysis: Enterprise Network Equipment, Worldwide, 1Q14 Update

Published: 27 May 2014

ID: G00261457

Analyst(s): Severine Real, Christian Canales, Naresh Singh, Joe Skorupa

Summary

This forecast factors an increase in spending of 1.1% to 1.5% from 2014 through 2017, due to stronger-than-anticipated adoption of LAN and WAN technologies. Despite 6% growth in 2013, we continue to observe caution, as the slow recovering macroeconomic situation curtails broader market demand.

Table Of Contents

Analysis

  • Overall Forecast Analysis
    • Improved Forecast Outlook and Better-Than-Expected Vendor Revenue in 4Q13 Drives Upward Revision of Forecast
  • Segment Forecast Analysis
    • Enterprise Ethernet Switches: Stronger-Than-Expected Sales of Gigabit Switches
    • Application Acceleration Equipment: Virtual ADC Solutions Will Lead to a Return of Market Growth
    • WLAN: Stronger-Than-Expected Price Erosion of 802.11ac Access Points
    • Traditional Routers: Strong Adoption of Integrated Routers With Service Modules
    • Enterprise Network Security Equipment: Continued Market Transitions

Assumptions

  • Macroeconomic Factors
  • Addressable Market
    • Access Network Layer
    • Aggregation and Core Network Layer
  • Adoption Rate
    • Ethernet Switching
    • WLAN Equipment
    • Enterprise Routers
    • Network Security Equipment
    • Application Acceleration Equipment
  • Technology Life Cycle
  • Technology Transitions
    • Ethernet Switching
    • Network Security
    • WLAN
    • Application Acceleration Equipment

Market Model

  • Forecast Components
    • Unit/Port Shipments
    • Unit/Port ASP
    • Installed Base Forecast
    • Country Splits by Region
  • Influencing Factors
    • Addressable Market
    • Adoption Rate
    • Shipment History
    • Firm/Site Demographics
    • IT Penetration Assumptions
    • Device (PC, Server) Installed Base Forecasts
    • Life Cycle
    • Current-Year Estimates
    • Technology Transitions
    • GDP Forecasts
    • Cost Reduction Factor
    • ASP History
    • WAN Service Forecasts
  • Connections
    • Addressable Market > Installed Base Forecast and Adoption Rate > Installed Base Forecast
    • Life Cycle > Unit/Port Shipment Forecast
    • Current-Year Estimates > Unit/Port Shipment Forecast
    • GDP Impact > Unit/Port Shipment Forecast
  • Inputs to Country Splits by Region

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