Spending on Data Center Switches to Grow at a 4% CAGR from 2019 to 2024, Despite the Pandemic
Dell’Oro Group published an update to its Data Center switch market five-year forecast report. The report shows that the data center switch market is expected to grow at a 4% CAGR from 2019 to 2024, approaching $17 B by the end of our forecast period. Despite the COVID-19 pandemic, our revised forecast of 4% CAGR shows only a slight downward adjustment from our prior January forecast of 5%.
Network Security and ADC Market to Grow 6 Percent CAGR from 2019 to 2024
The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024. Growth at 6% is slightly weaker than the typical high single-digit pattern we have seen over the last decade, but considering the ongoing COVID-19 pandemic is explicable. Several of the key takeaways from our forecast report include:
The Total Campus Switch Market Forecast to Decline at 1 Percent CAGR from 2019 to 2024
Dell’Oro Group published an update to its Campus switch market five-year forecast report. The report shows that the campus switch market is expected to be profoundly impacted by the COVID19- pandemic and to decline at 1% CAGR from 2019 to 2024, compared to our prior January forecast of + 3% CAGR.
Wi-Fi 6E: The Sooner, The Better!
The enterprise-class Wireless LAN (WLAN) market has enjoyed high single-digit revenue growth rates for the past several years. In 2019 sales decelerated as a result of broad-based economic uncertainty causing customers to delay expenditures. Customer hesitation correlated with rising trade war tensions and tariffs, Brexit, and economic slowdown in all macro-regions of the world. The pandemic emerging in 2020 amplified the deceleration.
The Total MEC Market to Grow at a 169% CAGR from 2019 to 2024
We just published the July 2020 Multi-Access Edge Computing (MEC) market forecast report. The industry collaboration and the momentum being achieved, our July 2020 five-year MEC forecast (2019 to 2024) has doubled from our January 2020 forecast. The market is still expected to start slow but greatly accelerates in the second half of the forecast period. We expect the China market will be leading in the scale of MEC deployments and will represent the largest regional market. Here are some key takeaways from the report
Network Equipment Services Market—July 2020 Advanced Research Report
Following five consecutive years of market contraction, the NE Services market began to reverse direction, growing slightly in 2019 due to positive developments with Network Rollout Services and Consulting Services offsetting reduced demand for Managed Services. We expect the improved market sentiment in 2019 will extend through the forecast period, resulting in the market registering $46 billion in 2024.
Home Networking Equipment Unit Shipments Expected to Drop Only 1% in 2020
Global home networking unit shipments are only expected to decline by 1% in 2020, dipping from 193.9 M worldwide to 192.1 M. Included devices are residential access points, residential WiFi routers, including mesh routers, as well as broadband CPE with integrated WiFi capabilities.
Analyst Opinion – Vecima Networks Adds to Access Portfolio with Nokia Cable Buy
In yet another sign of a re-shuffling of the deck among cable equipment vendors, Vecima Networks announced an agreement to acquire the Nokia DOCSIS DAA and EPON/DPoE product portfolio. The agreement comes on the heels of ATX Networks’ acquisition of Cisco’s cable amplifier business and continues the trend we have seen of larger equipment vendors divesting business units to smaller companies focused squarely on global cable operators.
4G/5G FWA Technology Forum Announced to Speed Fixed Wireless Adoption
During an online event last week, Huawei and a select group of 20 chipset, module, and terminal suppliers formally introduced the 4G/5G Fixed Wireless Access (FWA) Technology Forum 2020. The group’s mission is to help
Broadband Access Equipment Spending to Drop 7% in 2020
Global headwinds in 2020 will result in a 7% Y/Y decline in broadband access equipment spending, as service providers try to deliver judicious bandwidth growth to satisfy increased demand from telework and online education applications, while also preserving capital for a return to growth in 2021 and beyond.
