4Q 1999 LAN Packet Switch & Hub Market Analysis: Industry Report

4Q 1999 LAN Packet Switch & Hub Market Analysis

Product Type: Market Research Report
Published by: In-Stat
Published: February 2000
Product Code: R97-481

Description

The LAN packet Layer 2 & Layer 3 Switch market grew 10% in the fourth quarter of 1999 (4Q 99) as ports shipped reached 24.02 million, up from the 21.81 million ports shipped in the third quarter (3Q). Revenues grew at a healthy 11% to $3.4 billion in 4Q 99. Annually, the total market grew 70% in 1999, as ports shipped reached 80.59 million, and revenues grew 25% to $12.33 billion.

Total Layer 2 (L2) switch port shipments for 4Q were 22.55 million, comprising 94% of the total switch market. Of this market, the fixed-configured (fixed) L2 subsegment made up 75% of the total L2 switch market in 4Q, coming in at 16.91 million ports shipped. The fixed L2 segment is the lowest-cost, highest-volume market for switches, and is the segment most susceptible to rapid Average Selling Price (ASP) erosion. These switches appeal to customers who have basic networking needs, and may be making the transition from shared to switched technology. L2 and Layer 3 (L3) modular, chassis-based (modular) switches grew by 28% in 4Q to 6.73 million ports shipped. Modular switches are targeted towards the wiring closet or backbone, and increasingly these areas are being filled with L3 ports, with the only notable exception being Extreme's success with fixed L3 switches. The increase in L3 ports shipped in 4Q comes partly at the expense of the L2 modular switches.

In 1999, total L2 port shipments grew 66% to 76.74 million and revenues grew only 8% to $9.59 billion. Viewing this segment from the annual perspective highlights its commoditization, as seen in the disproportionate growth in ports as compared to revenues.

L3 port shipments grew 40% in 4Q 99, reaching 1.47 million total ports. This accounted for 6% of total ports shipped, but made up 27% of total revenues at $932.48 million. The higher revenue percentage is due to the much higher ASPs of L3 ports. L3 modular ports reached 1.09 million ports, up 44% from 3Q. L3 fixed also had healthy growth, with total ports shipped growing 28% to almost 386 thousand.

Total L3 port shipments grew 243% to 3.84 million in 1999 and revenues kept pace, growing 208% to $2.59 billion. L3 Gigabit Ethernet products, which increased over 376% in ports shipped and 288% in sales for the year, drove this growth.

Table of Contents

Executive Summary
Market Overview
Market Shares
Methodology
Segmentation and Definition
Packet Switches
Market Shares
Worldwide Forecasts
Geographic Forecasts
APPENDIX
- 4Q 1999 Shared Media Hubs
- Hub Market Summary
- Hub Market Highlights
- Hub Segmentation
- Hub Market Shares
- Hub Worldwide Forecasts

List of Tables

Table 1. L2 & L3 Packet Switches Port Market Shares
Table 2. L2 & L3 Packet Switches Sales Market Shares
Table 3. L2 Packet Switches Port Market Shares
Table 4. L2 Packet Switches Sales Market Shares
Table 5. L3 Packet Switches Port Market Shares
Table 6. L3 Packet Switches Sales Market Shares
Table 7. L2 & L3 Modular Switch Port Market Shares
Table 8. L2 & L3 Modular Switch Sales Market Shares
Table 9. L2 & L3 Fixed Switch Port Market Shares
Table 10. L2 & L3 Fixed Switch Sales Market Shares
Table 11. L2 10 Mbps Ethernet Switch Port Market Shares
Table 12. L2 10 Mbps Ethernet Switch Sales Market Shares
Table 13. L2 Modular 10 Mbps Ethernet Switch Port Market Shares
Table 14. L2 Modular 10 Mbps Ethernet Switch Sales Market Shares
Table 15. L2 Fixed 10 Mbps Ethernet Switch Port Market Shares
Table 16. L2 Fixed 10 Mbps Ethernet Switch Sales Market Shares
Table 17. L2 & L3 Fast Ethernet Switch Port Market Shares
Table 18. L2 & L3 Fast Ethernet Switch Sales Market Shares
Table 19. L2 Fast Ethernet Switch Port Market Shares
Table 20. L2 Fast Ethernet Switch Sales Market Shares
Table 21. L2 Modular Fast Ethernet Switch Port Market Shares
Table 22. L2 Modular Fast Ethernet Switch Sales Market Shares
Table 23. L2 Fixed Fast Ethernet Switch Port Market Shares
Table 24. L2 Fixed Fast Ethernet Switch Sales Market Shares
Table 25. L3 Fast Ethernet Switch Port Market Shares
Table 26. L3 Fast Ethernet Switch Sales Market Shares
Table 27. L3 Modular Fast Ethernet Switch Port Market Shares
Table 28. L3 Modular Fast Ethernet Switch Sales Market Shares
Table 29. L3 Fixed Fast Ethernet Switch Port Market Shares
Table 30. L3 Fixed Fast Ethernet Switch Sales Market Shares
Table 31. L2 & L3 Gigabit Ethernet Switch Port Market Shares
Table 32. L2 & L3 Gigabit Ethernet Switch Sales Market Shares
Table 33. L2 Gigabit Ethernet Switch Port Market Shares
Table 34. L2 Gigabit Ethernet Switch Sales Market Shares
Table 35. L2 Modular Gigabit Ethernet Switch Port Market Shares
Table 36. L2 Modular Gigabit Ethernet Switch Sales Market Shares
Table 37. L2 Fixed Gigabit Ethernet Switch Port Market Shares
Table 38. L2 Fixed Gigabit Ethernet Switch Sales Market Shares
Table 39. L3 Gigabit Ethernet Switch Port Market Shares
Table 40. L3 Gigabit Ethernet Switch Sales Market Shares
Table 41. L3 Modular Gigabit Ethernet Switch Port Market Shares
Table 42. L3 Modular Gigabit Ethernet Switch Sales Market Shares
Table 43. L3 Fixed Gigabit Ethernet Switch Port Market Shares
Table 44. L3 Fixed Gigabit Ethernet Switch Sales Market Shares
Table 45. L2 & L3 Token Ring & HSTR Switch Port Market Shares
Table 46. L2 & L3 Token Ring & HSTR Switch Sales Market Shares
Table 47. L2 & L3 FDDI Switch Port Market Shares
Table 48. L2 & L3 FDDI Switch Sales Market Shares
Table 49. L2 & L3 Worldwide Packet Switches
Table 50. L2 Worldwide Packet Switches
Table 51. L3 Worldwide Switches
Table 52. L2 Worldwide 10 Mbps Ethernet Switches
Table 53. L2 & L3 Worldwide Fast Ethernet Switches
Table 54. L2 Worldwide Fast Ethernet Switches
Table 55. L3 Worldwide Fast Ethernet Switches
Table 56. L2 & L3 Worldwide Gigabit Ethernet Switches
Table 57. L2 Worldwide Gigabit Ethernet Switches
Table 58. L3 Worldwide Gigabit Ethernet Switches
Table 59. L2 & L3 Worldwide Token Ring & HSTR Switches
Table 60. L2 & L3 Worldwide FDDI Switches
Table 61. L2 & L3 Packet Switch Port Comparison
Table 62. L2 & L3 Packet Switch Revenue Comparison
Table 63. L2 Packet Switch Port Comparison
Table 64. L2 Packet Switch Revenue Comparison
Table 65. L3 Packet Switch Port Comparison
Table 66. L3 Packet Switch Revenue Comparison
Table 67. L2 & L3 Packet Switch Shipments by Region
Table 68. L2 & L3 Packet Switch Geographic Splits
Table 69. L2 10 Mbps Ethernet Switch Shipments by Region
Table 70. L2 10 Mbps Ethernet Switch Geographic Splits
Table 71. L2 & L3 Fast Ethernet Switch Shipments by Region
Table 72. L2 & L3 Fast Ethernet Switch Geographic Splits
Table 73. L2 & L3 Gigabit Ethernet Switch Shipments by Region
Table 74. L2 & L3 Gigabit Ethernet Switch Geographic Splits
Table 75. L2 & L3 Token Ring & HSTR Switch Shipments by Region
Table 76. L2 & L3 Token Ring & HSTR Switch Geographic Splits
Table 77. L2 & L3 FDDI Switch Shipments by Region
Table 78. L2 & L3 FDDI Switch Geographic Splits
Table 79. Shared Media Hub Port Market Shares
Table 80. Shared Media Hub Sales Market Shares
Table 81. Modular Hub Port Market Shares
Table 82. Modular Hub Sales Market Shares
Table 83. Stackable Hub Port Market Shares
Table 84. Stackable Hub Sales Market Shares
Table 85. Unmanaged Hub Port Market Shares
Table 86. Unmanaged Hub Sales Market Shares
Table 87. Shared Media Hub Form Factor Port Comparison (M)
Table 88. Shared Media Hub Form Factor Sales Comparison ($M)
Table 89. 10 Mbps Ethernet Hub Port Market Shares
Table 90. 10 Mbps Ethernet Hub Sales Market Shares
Table 91. Fast Ethernet Hub Port Market Shares
Table 92. Fast Ethernet Hub Sales Market Shares
Table 93. Token Ring Hub Port Market Shares
Table 94. Token Ring Hub Sales Market Shares
Table 95. FDDI Hub Port Market Shares
Table 96. FDDI Hub Sales Market Shares
Table 97. Worldwide Shared Media Hubs
Table 98. Worldwide Modular Hubs
Table 99. Worldwide Stackable Hubs
Table 100. Worldwide Unmanaged Hubs
Table 101. Worldwide 10 Mbps Ethernet Hubs
Table 102. Worldwide Fast Ethernet Hubs
Table 103. Worldwide Token Ring Hubs
Table 104. Worldwide FDDI Hubs
Table 105. Hub Port Comparison
Table 106. Hub Sales Comparison

List of Figures

Figure 1. 4Q 99 L2 & L3 Port Market Share by Technology
Figure 2. Cahners In-Stat Group's LAN Segmentation
Figure 3. L2 & L3 Packet Switch Port Comparison
Figure 4. L2 & L3 Packet Switch Revenue Comparison
Figure 5. L2 Packet Switch Port Comparison
Figure 6. L2 Packet Switch Revenue Comparison
Figure 7. L3 Packet Switch Port Comparison
Figure 8. L3 Packet Switch Revenue Comparison
Figure 9. Shared Media Hub Form Factor Comparison
Figure 10. Hub Form Factor Port Comparison (M)
Figure 11. Hub Form Factor Sales Comparison ($M)
Figure 12. Hub Port Comparison
Figure 13. Hub Sales Comparison

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