Networking market still on the up in Q2

WLAN and switching sectors still posting stellar growth numbers, according to Infonetics Research

The networking sector continues to blossom despite the economic headwinds, with the switching and wireless LAN (WLAN) markets enjoying bumper growth in 2012's second quarter.

Figures from Infonetics Research reveal that the worth of the Ethernet switching market topped $5bn (£3.1bn) in Q2, having grown 13 per cent year on year. The leading vendor trio of Cisco, HP and Juniper all posted annual revenue growth in Q2. Juniper made the biggest gains, allowing the vendor to make up ground as its biggest rivals lost market share.

Dell also showed well in Q2 as its acquisition of Force10 helped the Texan hardware giant to post a double-digit increase in Ethernet switch sales.

Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics, said: "Sales in North America, the largest Ethernet switch market, did especially well, providing an important boost to the overall market. As usual, demand for 10G switches was strong, almost doubling from a year ago, and the 40G Ethernet market is taking off, as vendors round out their 40G solution portfolio."

The wireless market was also in rude health last quarter, with global sales of WLAN equipment and WiFi phones expanding to just below $1bn. EMEA was a key growth engine, with revenue across the region growing by more than a third annually.

Long-term leader Cisco increased its dominance with the addition of four extra market share points compared with the corresponding period last year. Aruba took second spot in the vendor rankings in Q2, while HP overtook Motorola to grab the bronze medal position.

"The world is going wireless, and users expect fast, always-on connectivity no matter where they are," added Machowinski. "Enterprises need to keep pace with ever-increasing bandwidth demands, and next-gen WLAN gear based on fast 802.11n and, soon, 802.11ac technologies give them a reason to upgrade."