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Ethernet Switch Market Analysis: Gigabit Ethernet Getting An Edge
In-Stat/MDR, July 2004, Pages: 89
The overall worldwide Ethernet switch market grew strongly in 2003, with total port shipments rising 16.0% from 166.3 million ports shipped in 2002 to 193.0 million ports shipped in 2003. However, due to sharply declining ASPs over the year, overall manufacturers revenue declined 11.8%, from $13.0 billion in 2002 to $11.4 billion in 2003. In addition to a gradually improving global economy, In-Stat/MDR believes that market growth in 2003 was driven by a sharp increase in the total number of endpoints connected to the LAN; an increasing diversity of traffic flows on the LAN, through network convergence; heightened security awareness and threat of cyber-attack; tighter integration with partner networks and to remote teleworkers; an increasing need to replace aging equipment after three years of tight IT budgets; and, a continuing drop in ASPs across all Ethernet switch product segments. In-Stat/MDR expects these factors to drive continued market growth over the five year forecast period, with total port shipments rising to 502.8 million ports shipped in 2008. In addition, these trends are causing an underlying technology shift in the Ethernet switch market, with increasing deployments of both L3 Ethernet switches and Gigabit Ethernet switches at the network edge, as LANs become both more intelligent and offer increased bandwidth.
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