From Fast to Faster: A Fast Ethernet and Gigabit Ethernet IC Market Analysis

Since its inception in the early 1980s, Ethernet technology has changed the look of the Local Area Network (LAN). Ethernet has proven both highly scaleable -- as it has went from 10 Mbps to 100 Mbps and now 1000, or 1 Gigabit per second -- as well as cheap. With the cost of a Fast Ethernet Network Interface Card costing only $61 in mid-1999, it is clear that Ethernet will continue to dominate the LAN for some time to come.

This is good news for the Fast Ethernet and Gigabit Ethernet IC vendor. The total opportunity for the Fast Ethernet and Gigabit Ethernet IC market will grow to nearly $1.9 billion in 1999, and continue that growth throughout the forecast period, hitting $2.7 billion in 2003.

However, competing in the Fast Ethernet and Gigabit Ethernet IC market will not be without its challenges. The demand for increased port densities at the PHY, MAC and Switch IC layers accompanied by lower per port costs will keep vendors busy. Additionally, vertical integration will also be crucial as systems vendors call for total solutions on a single device for low cost workgroup switch implementations.

Increased functionality will also be demanded in the Switch IC. Such features as VLAN support is a given and L3 functionality will move from multichip, network processor oriented solutions today to be increasingly integrated into the core switch chip by the end of the forecast period.

• Executive Summary
  
• Methodology
  
• Definitions and Segmentation
  
  
  
  • 10/100 Ethernet Hub/Switching
    
  • Gigabit Ethernet Switching
    
  • Fast Ethernet Network Interface Cards
    
  • Gigabit Ethernet Network Interface Cards
  
  
• The 100 and 1000 Mbps Ethernet Equipment Market
  
  
  
  • Fast Ethernet Hub Forecast
    
  • Fast Ethernet Switch Forecast
    
  • Fast Ethernet NIC Forecast
    
  • Gigabit Ethernet Switch Forecast
    
  • Gigabit Ethernet NIC Forecast
  
  
• Fast Ethernet and Gigabit Ethernet Market Shares
  
  
  
  • Fast Ethernet Hub Market Shares
    
  • Fast Ethernet Switch Market Shares
    
  • Gigabit Ethernet Switch Market Shares
    
  • Fast Ethernet NIC Market Shares
    
  • Gigabit Ethernet NIC Market Shares
  
  
• Fast Ethernet and Gigabit Ethernet IC Forecast
  
  
  
  • Fast Ethernet IC Forecast
    
  • Gigabit Ethernet IC Forecast
  
  
• Vendor Profiles

List of Tables

• Table 1. Fast Ethernet & Gigabit Ethernet IC Forecast (Switch, MAC and
  PHY)
  
• Table 2 Worldwide Fast Ethernet Hub Forecast
  
• Table 3. Worldwide Fast Ethernet Switch Forecast
  
• Table 4. Fast Ethernet NIC Forecast 1998-2003
  
• Table 5. Worldwide Gigabit Ethernet Switch Port Forecast
  
• Table 6. Worldwide Gigabit Ethernet NIC & LOM Forecast
  
• Table 7. Gigabit Ethernet Copper vs. Fiber Forecast
  
• Table 8. Worldwide Fast Ethernet Hub Port Market Shares
  
• Table 9. Worldwide Fast Ethernet L2&3 Switch Port Market Shares
  
• Table 10. Worldwide Gigabit Ethernet Switch Port Market Shares
  
• Table 11. Worldwide Fast Ethernet NIC Market Shares
  
• Table 12. Gigabit Ethernet NIC Market Shares
  
• Table 13. Worldwide Fast Ethernet PHY Forecast 1998-2003
  
• Table 14. Fast Ethernet MAC Forecast 1998-2003
  
• Table 15. Fast Ethernet Switch IC Forecast 1998-2003
  
• Table 16. Fast Ethernet Hub IC Forecast 1998-2003
  
• Table 17. Worldwide Gigabit Ethernet PHY Forecast 1998-2003
  
• Table 18. Percentage Breakout of Gigabit Ethernet PHY by Fiber vs. Copper
  
• Table 19. Gigabit Ethernet Fiber PHY Forecast 1998-2003
  
• Table 20. Gigabit Ethernet Copper PHY Forecast 1998-2003
  
• Table 21. Gigabit Ethernet MAC Forecast 1998-2003
  
• Table 22. Gigabit Ethernet Switch IC Forecast 1998-2003
  

List of Figures

• Figure 1. Dedicated 10/100Mbps to the Desktop
  
• Figure 2. Connecting Hubs and Servers
  
• Figure 3. A Fast Ethernet Switch Collapsed Backbone
  
• Figure 4. Switch-to-Switch Configuration
  
• Figure 5. Switch-to-Server Configuration
  
• Figure 6 Worldwide Fast Ethernet Hub Port/Sales Comparison
  
• Figure 7. Worldwide Fast Ethernet Switch Port/Sales Comparison
  
• Figure 8. Worldwide Fast Ethernet NIC & LOM Forecast
  
• Figure 9. Worldwide Gigabit Ethernet Switch Forecast
  
• Figure 10. Worldwide Gigabit NIC Fiber vs. Copper Forecast
  
• Figure 11. 1H99 Fast Ethernet Hub Market Share
  
• Figure 12. 1H99 Fast Ethernet Switch Market Shares
  
• Figure 13. 1H99 Gigabit Ethernet Switch Port Market Shares
  
• Figure 14 . 1H99 Fast Ethernet NIC Market Shares
  
• Figure 15. 1H99 Gigabit Ethernet Market Shares
  
• Figure 16. Fast Ethernet PHY Forecast
  
• Figure 17. Fast Ethernet MAC Forecast
  
• Figure 18. Fast Ethernet Switch IC Forecast
  
• Figure 19. Fast Ethernet Hub IC Forecast
  
• Figure 20. Gigabit Ethernet PHY Forecast
  
• Figure 21. Gigabit Ethernet PHY Forecast
  
• Figure 22. Gigabit Ethernet MAC Forecast
  
• Figure 23. Gigabit Ethernet Switch IC Forecast