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Report: Ethernet switch revenue down 19 percent

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From the 'economic slowdown stats' files:

Research firm Dell 'Oro Group put out a report this week on the Worldwide Shared Hub, Ethernet & LAN Switch market. The report shows the damage that the current economy has done to the switch market.

For 2009, Dell 'Oro is forecasting global Ethernet switch revenues of $15.8 billion which is a 19 percent decline over the $19.5 billion reported for 2008.

Moving forward the forecast is for 1 percent growth in 2009 for market revenues of $16.0 billion. By 2013 the current forecast model has global  Ethernet & LAN Switch market at $18.3 billion.

To my naked eye that means over the next five years, the Ethernet switch market will not recover to 2008 levels of revenue. Frankly, I find that shocking.

I queried Dell'Oro about the report (they graciously sent me the numbers but didn't have time to answer my questions). I also tried to get the opinions of the major switch vendors, but they were also quiet.

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