Scottsdale, ARIZ. — The worldwide networking equipment market grew to $11.8 billion in Q2 2000, a healthy 8 % increase from Q1 2000, according to Cahners In-Stat Group ( http://www.instat.com ). The high-tech market research firm believes the networking equipment market is positioned for more robust growth in 2000, and expects year-end total revenues to hit almost $50 billion.
“As expected, growth quickened in Q2 2000, due to strong enterprise backbone purchases, continued service provider network build-out, and growth in the demand for branch office and SOHO networking equipment. Growth in Q2 00 also appeared quite healthy due to the typical seasonal sluggishness experienced in Q1 00,” said Gemma Paulo, Research Analyst for In-Stat’s Voice & Data Service. “Some of the top players in the networking equipment market, including 3Com and Lucent, experienced market share declines as they continued to deal with reorganizational issues.”
In-Stat also found that:
* Quarter to quarter growth was driven primarily by WAN equipment, i.e. digital modems, access concentrators and routers. DSL and cable modem revenues combined, increased 30 percent, and additional growth is expected as obstacles to deployment are increasingly overcome. The router market’s greater-than-expected growth was driven by the tremendous demand for branch office and SOHO routers. Furthermore, the continued growth in ATM switches was driven by the rapid deployment of broadband services, VoIP and network convergence.
* North America continued to dominate network hardware sales, accounting for 54 percent of the market in Q2 00. However, Asia is building out service provider infrastructure at an unparalleled pace, and jumped 2 percentage points in revenue share, to 15 percent, in 2Q 00.
* Cisco maintained its number one market share ranking, followed by Nortel, 3Com and Lucent. While Cisco grew its revenue share, all three of its closest competitors experienced declines in their market shares for Q2 00.
The report Q2 00 State of the Networking Equipment Market, (#CQ0003M8), is part of In-Stat’s Quarterly Networking Market Review Service. This service is recognized in both the industry and the financial community as the primary source for current and accurate quarterly statistics and provides unparalleled, overall assessment of the ways in which all networking segments interact with each other on a quarterly basis. For more information, please visit http://www.instat.com/catalog/cat-cq-equip.htm#cq0003m8 .