North America and Europe Declined, China Surged

REDWOOD CITY, Calif. – March 10, 2019 – According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, the worldwide Data Center Switch market revenue grew only one percent year-over-year (Y/Y) in 4Q 2019. This is the slowest growth recorded in six years. Revenue from North America and Europe was down but, surprisingly, China grew at a strong double-digit Y/Y rate during the quarter.

“In line with our expectations, the Top 4 U.S. Cloud Service Providers (SPs) posted mixed performance. Google and Amazon’s strong growth was partially offset by weakness from Facebook and Microsoft,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Additionally, ongoing macroeconomic uncertainties in North America and Europe continued to weigh on network spending from Tier 2/3 Cloud SPs and large enterprises. However, what’s intriguing this quarter is the growth witnessed in China despite macroeconomic headwinds in the region. We believe part of this growth could reflect inventory buildup as well as some government projects to stimulate the economy,” added Boujelbene.

Additional highlights from the Ethernet Switch – Data Center Quarterly Report:

  • Market softness is expected to persist through 1H 2020.
  • Macroeconomic headwinds are expected to deteriorate due to the potential impact from Coronavirus (COVID-19) on demand as well as supply.
  • Arista, Cisco, Juniper, and Dell initiated early 400 Gbps shipments.

About the Report

The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1000 Mbps,10, 25, 40, 50, 100, 200, and 400 GE); and regional breakouts. To purchase these reports, please contact us by email at dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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