Routers, switches and other networking gear became a $39 billion market in 2013, as 40G took hold in the data center and 100G became the new standard for service providers, according to the latest research from Infonetics.
Enterprise port revenue rose 5% relative to 2012, while service providers spent an additional 4%, the researchers said. Although 1G connections remained the most common, and 10G the biggest revenue driver, most of the new spending originates in the 40G and 100G sectors.
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The 40G standard is being quickly driven out of the core service provider network, according to the report's co-author, principal analyst Andrew Schmitt.
"Coherent 100G is well on its way to completely taking over the core, growing to nearly 80% of all wavelengths by 2016, effectively shutting down competing 10G and 40G deployments," he said in a statement.
In the enterprise data center, however, 40G ports are highly sought-after, as their numbers doubled in 2013. The researchers said that this growth will accelerate even further in 2014, predicting a three-fold increase in 40G port shipments. Although 100G products for the data center began shipping in 2013, they have not yet achieved meaningful market penetration, according to Infonetics.
Other researchers have also highlighted the rise of 10G and 40G in the enterprise data center of late. IDC's latest Ethernet switch and router report said that data center networks saw more growth than edge networks in 2013. According to IDC analyst Rohit Mehra, a lot of that was due to demand for bigger ports in the data center.
"Taking into account fairly significant regional variations, the campus segment is relatively stable while the datacenter continues to reflect the rapid explosion of 10GbE and 40GbE switch ports shipments," he said.
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This story, "Enterprise and Service Provider Networking Port Revenues Reach $39B" was originally published by Network World.