• New datacentre installations (datacentre 2.0), enterprise converged networking, consumer adoption of broadband modems/routers, and increased deployment of wireless LANs (WLAN) across the consumer and enterprise sector brought solid growth to the networking equipment market in 2007.


• Compared to the same quarter in 2006, IDC’s Australia 4Q07 LAN tracker revealed that the total switch and router market grew 18% to reach US$912.8 million in 2007. Switch revenue was US$573.3 million and router revenue was US$339.5 million. The growth of the router and switch market from 2006 to 2007 was 15.7% and 19.8%, respectively.


• As the core network upgrades for both Telstra and Optus are now complete, it is unlikely that the market can sustain such strong growth going forward.


• The Gigabit switch market, which contributes to 72% or US$414 million of the total switch market revenue, was the key technology driver in 2007, growing strongly at 98% year over year (YoY).


• In 2007, the WLAN market grew to 23% from US$110.11 million in 2006 to US$136.73 million, which was slightly higher than the IDC 2006 forecast. Wireless routers/gateways revenues increased 19% in 2007, delivering US$70.9 million and contributing to 50% of the total WLAN market.

Tatiana Hinova
+420 221 423 140
thinova@idc.com