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Networking market continues to rack up impressive growth

Customers are demanding better application performance across wide-area networks and they’re willing to pay for it, according to research from Infonetics Research.

The WAN optimization market –one of the stronger networking segments – grew 23% during the fourth quarter of last year, compared to the previous quarter. It grew 37% during 2006 overal, compared to 2005.

Revenue for enterprise-class routers grew 6% during the last quarter of 2006, and demand will continue strong, growing 13% to $4.8 billion between 2006 and 2009, the report predicts.

Just under half the total revenue for routers worldwide came from enterprise-class units; 46% came from the midrange and 6% from the low.

Cisco is still the monster in the market, with 75% of worldwide revenue; Huawei ranked second and Juniper third among router vendors.

Ethernet switch revenues grew 3% during the fourth quarter of 2006, and will grow 20% between now and 2009, the report predicts. The mix of protocols is changing, however. Shipments of 10Gbit/sec ports almost doubled, power-over-Ethernet ports and 1Gbit/sec Ethernet ports both increased about 50%.

Market share in the rankings for managed Layer 2 switches put Cisco in front with 54%, Huawei in second wth 13%; in Layer 3, however, Cisco is at 24% and Hewlett-Packard’s ProCurve Networking is at 21%.

The full version of this story appeared on TechTarget sister site SearchNetworking.com.

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