Showing posts with label IDC. Show all posts
Showing posts with label IDC. Show all posts

Wednesday, January 15, 2020

IDC: Vendor revenue for cloud infrastructure dipped in 3Q19

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, declined 1.8% year over year in the third quarter of 2019 (3Q19), according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker. The decline was softer than the dip experienced in 2Q19, and leading IDC to slightly increase its forecast for total spending on cloud IT infrastructure in 2019 to $65.4 billion, which represents flat performance compared to 2018.

IDC said the decline in cloud IT infrastructure spending was driven by the public cloud segment, which was down 3.7% year over year, reaching $11.9 billion; sequentially from 2Q19, this represents a 24.4% increase. As the overall segment is generally trending up, it tends to be more volatile quarterly as a significant part of the public cloud IT segment is represented by a few hyperscale service providers.

Some highlights:
  • Vendor revenue in the public cloud IT segment is expected to reach $44 billion in sales for the full year 2019, a decline of 3.3% from 2018. 
  • Vendor revenue in the private cloud IT segment increased 3.2% year over year, reaching nearly $5 billion. IDC expects spending in this segment to grow 7.2% year over year in 2019 to $21.4 billion.
  • The IT infrastructure industry is approaching the point where spending on cloud IT infrastructure consistently surpasses spending on non-cloud IT infrastructure. In 3Q19, cloud IT environments accounted for 53.4% of vendor revenues. However, for the full year 2019, spending on cloud IT infrastructure is expected to stay just below the 50% mark at 49.8%. This year (2020) is expected to become the tipping point with spending on cloud IT infrastructure staying in the 50+% range.
  • Vendor revenue for Ethernet switches is the only segment expected to deliver visible year-over-year growth in 2019, up 11.2%, while spending on compute platforms will decline 3.1% and spending on storage will grow just 0.8%. Compute will remain the largest category of cloud IT infrastructure spending at $34.1 billion.
  • Sales of IT infrastructure products into traditional (non-cloud) IT environments declined 7.7% from a year ago in 3Q19. 
  • For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 5.3%. 
  • By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 41.9% of total worldwide IT infrastructure spending (down from 51.6% in 2018). 
  • Geographically, declines in the U.S., Western Europe, and Latin America were driven by overall market weakness; in these and some other regions 3Q19 softness in cloud IT infrastructure spending was also affected by comparisons to a strong 3Q18. In Asia/Pacific (excluding Japan), the second largest geography after the U.S., spending on cloud IT infrastructure increased 1.2% year over year, which is low for this region. However, it is in comparison with strong double-digit growth in 2018. Other growing regions in 3Q19 included Canada (4.9%), Central & Eastern Europe (4.6%), and Middle East & Africa (18.1%).


https://www.idc.com/getdoc.jsp?containerId=prUS45899920

Monday, December 16, 2019

IDC: 1.1 billion 5G connections in 2023

IDC is predicting that the number of 5G connections will grow from roughly 10.0 million in 2019 to 1.01 billion in 2023. By 2023, IDC expects 5G will represent 8.9% of all mobile device connections.

"While there is a lot to be excited about with 5G, and there are impressive early success stories to fuel that enthusiasm, the road to realizing the full potential of 5G beyond enhanced mobile broadband is a longer-term endeavor, with a great deal of work yet to be done on standards, regulations, and spectrum allocations," said Jason Leigh, research manager for Mobility at IDC. "Despite the fact that many of the more futuristic use cases involving 5G remain three to five years from commercial scale, mobile subscribers will be drawn to 5G for video streaming, mobile gaming, and AR/VR applications in the near term."

Sunday, December 8, 2019

IDC: Ethernet switch market rose 0.1% in 3Q 2019

The Worldwide Ethernet switch market (Layer 2/3) recorded $7.32 billion in revenue in the third quarter of 2019 (3Q19), an increase of 0.1% year over year, according to IDC's Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker. Worldwide total enterprise and service provider (SP) router market revenues grew 0.8% year over year in 3Q19 to $3.74 billion.



Some highlights:


  • The Middle East and Africa region grew 9.3% with the region's largest market, the United Arab Emirates, growing 6.9% year over year while Israel's market grew 18.8%. 
  • Across Europe, growth was stagnant. The Central and Eastern Europe (CEE) region lost 9.0% compared to a year earlier with Russia dropping 13.9% year over year. 
  • The Western Europe market fell 6.1% with Germany losing 5.6% year over year. Denmark was a bright spot in the region with 18.6% year-over-year growth.
  • The Asia/Pacific (excluding Japan) (APeJ) region grew 1.3% year over year. In China, the market grew 4.6% year over year while the Philippines rose 25.9%. Japan was off 3.8% compared to its growth in 3Q18. In Latin America, the market dropped 4.4% year over year, while the U.S. market grew 2.6% annually and Canada declined 4.9% year over year.
  • Port shipments for 100Gb switches rose 57.2% year over year to 5.6 million. 100Gb revenues grew 32.8% year over year in 3Q19 to $1.44 billion, making up 19.6% of total market revenue compared to 14.8% a year earlier. 
  • 25Gb switches also saw impressive growth with revenues increasing 69.3% to $463.4 million and port shipments growing 68.0% year over year. 
  • Lower-speed campus switches, a more mature part of the market, saw moderate growth in port shipments but declining revenue, pointing to a decrease in average selling prices (ASPs). 
  • 10Gb port shipments rose 7.9% year over year, but revenue declined 8.7% to deliver 26.3% of total market revenue. 1Gb switches grew 3.9% year over year in port shipments but declined 7.4% in revenue. 1Gb now accounts for 39.2% of the total Ethernet switch market revenue.



  • The worldwide enterprise and service provider router market increased 0.8% on a year-over-year basis in 3Q19 with the major service provider segment, which accounts for 75.5% of revenues, decreasing 0.1% and the enterprise segment of the market growing 3.6%. 
  • From a regional perspective, the combined service provider and enterprise router market fell 1.5% in APeJ with the enterprise segment growing 1.5% and the service provider segment declining 2.2% year over year. 
  • Japan's total market grew 3.9% year over year. Revenues in Western Europe were off 7.3% year over year while CEE revenues for the combined enterprise and service provider market grew 3.5% year over year. 
  • The Middle East & Africa region was up 8.9%. In the U.S., the enterprise segment was up 7.3% while service provider revenues grew 1.8%, giving the combined markets 3.2% year-over-year growth. In Latin America, the market grew 11.7%.
  • Cisco finished 3Q19 with a 5.6% year-over-year decline in overall Ethernet switch revenues and market share of 51.3%. In the hotly contested 25Gb/100Gb segment, Cisco was the market leader with 38.2% revenue share. Cisco's combined service provider and enterprise router revenue declined 10.6% year over year with enterprise router revenue increasing 3.4% and SP revenues falling 18.1%. Cisco's combined SP and enterprise router market share increased to 37.9%, up from 36.8% in 2Q19.
  • Huawei's Ethernet switch revenue rose 4.4% on an annualized basis, giving the company market share of 8.9%. The company's combined SP and enterprise router revenue rose 20.6% year over year, giving the company a market share of 28.1%.
  • Arista Networks saw Ethernet switch revenues increase 14.3% in 3Q19, bringing its share to 7.6% of the total market, up from 6.6% a year earlier. 100Gb revenues accounting for 68.8% of the company's total revenue, indicating the company's focus on hyperscale and cloud providers.
  • HPE's Ethernet switch revenue declined 7.0% year over year, resulting in overall market share of 5.3%.
  • Juniper's Ethernet switch revenue rose 4.5% year over year in 3Q19, bringing its market share to 3.2%. Juniper saw a 17.9% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.9%.


"Dynamics in the Ethernet switch and routing markets continue to evolve," said Petr Jirovsky, research director, IDC Networking Trackers. "In Ethernet switching, the seemingly insatiable demand for higher-speed networking platforms continue to drive investments. Meanwhile, lower-speed campus switching continues to moderate as enterprises build out connectivity platforms to support mobile workers and the Internet of Things. In the routing segment, the enterprise continues to buoy the broader market as enterprises and service providers augment their networks to support improved cloud connectivity."

https://www.idc.com/getdoc.jsp?containerId=prUS45711319

IDC: WLAN market dips in 3Q 2019

The combined enterprise and consumer wireless local area network (WLAN) market segments fell 3.6% year over year in the third quarter of 2019 (3Q19) with worldwide revenues of $3.8 billion, according to IDC's Worldwide Quarterly WLAN Tracker. The enterprise segment fell 1.1% year over year in 3Q19 to $1.62 billion.

"The enterprise WLAN market is transitioning as vendors and customers begin to adopt the latest Wi-Fi standard. In the third quarter of 2019, IDC tracked the initial shipments of 802.11ax, also known as Wi-Fi 6, which includes numerous features for enterprises and Internet of Things use cases," said Brandon Butler, senior research analyst, Enterprise Networks. "IDC expects the continued adoption of Wi-Fi 6 to be a major driver of growth for the enterprise WLAN market in the fourth quarter of 2019 and throughout 2020."



Some highlights:

  • Wi-Fi 6 took some share from shipments of previous generation 802.11ac products. 802.11ac products accounted for 84.8% of dependent access point shipments in the enterprise segment and 86.2% of dependent access point revenues. Wi-Fi 6 products made up 3.1% of dependent access point shipments and 6.1% of revenues.
  • The consumer WLAN market fell 5.3% year over year to $2.18 billion. 
  • Shipments of 802.11ac products accounted for 57.0% of units shipped, and 78.1% of revenues. The previous-generation 802.11n standard accounted for 42.8% of shipments, but only 20.8% of revenues.
  • The Asia/Pacific region, excluding Japan, was up 3.3% annually in 3Q19, with China growing 6.9% year over year while the Korean market fell 16.2%. Japan's market dropped 19.8% compared to a year earlier.
  • The Central and Eastern Europe region was off 1.7% compared to a year earlier, with Russia dropping 6.6%. 
  • Romania was a bright spot in the region with 11.9% growth. 
  • The Western Europe region fell 4.5% year over year. Germany fell 3.5% while the United Kingdom was down 10.0%. The Middle East and Africa region grew 8.0% year over year with growth of 6.7% from the United Arab Emirates and 25.5% from Qatar.
  • The Latin America region fell 12.1% with Mexico off 17.3% year over year. The U.S. market rose 0.1% on an annualized basis and was up 0.5% sequentially from the second quarter of 2019.
  • Cisco's worldwide enterprise WLAN revenue fell 4.9% year over year, but grew 1.9% compared to the previous quarter. The company's market share dropped slightly from 44.9% in 2Q19 to 44.2% in 3Q19.
  • HPE-Aruba's revenues increased 1.3% year over year and rose 4.6% sequentially. The company's market share grew to 14.1% in 3Q19 from 14.0% a quarter earlier.
  • Ubiquiti's revenues rose 9.4% annually and 8.6% sequentially, with the company's market share growing to 7.1%, from 6.8% a quarter earlier.
  • Huawei's quarterly revenues rose to 11.2% year over year and were up 3.7% sequentially, giving the company 5.4% market share.
  • CommScope(formerly ARRIS/Ruckus) was off 20.3% year over year and was down 6.7% compared to 2Q19. That caused the company's market share to drop from 5.8% in the second quarter to 5.2% in 3Q19.

https://www.idc.com/getdoc.jsp?containerId=prUS45706619

Thursday, December 5, 2019

IDC: Server market dips 6.7% in 3Q 2019

Vendor revenue in the worldwide server market declined 6.7% year over year to $22.0 billion during the third quarter of 2019 (3Q19), according to IDC's Worldwide Quarterly Server Tracker.  Worldwide server shipments declined 3.0% year over year to just under 3.1 million units in 3Q19.


"While the server market did indeed decline last quarter, next-generation workloads and advanced server innovation (e.g., accelerated computing, storage class memory, next-generation I/O, etc.) keep demand for enterprise compute at near historic highs," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "In fact, 3Q19 represented the second-biggest quarter for global server unit shipments in more than 16 years, eclipsed only by 3Q18."

Some highlights:

  • Dell Technologies and the combined HPE/New H3C Group ended 3Q19 in a statistical tie* for the number one position with 17.2% and 16.8% revenue share, respectively. 
  • Revenues for Dell Technologies declined 10.8% year over year 
  • Revenues for HPE/New H3C Group was down 3.2% year over year. 
  • The third-ranking server company during the quarter was Inspur/Inspur Power Systems, which captured 9.0% market share and grew revenues 15.3% year over year. 
  • Lenovo and Cisco ended the quarter tied* for the fifth position with 5.4% and 4.9% revenue share, respectively. 
  • Lenovo saw revenue decline by 16.9% year over year and Cisco saw its revenue grow 3.1% year over year.
  • The ODM Direct group of vendors accounted for 26.4% of total revenue and declined 7.1% year over year to $5.82 billion. 
  • Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 16.4% of all units shipped during the quarter.

Thursday, November 7, 2019

IDC: 358.3 million smartphone shipments in Q3, up 1% yoy

A total of 358.3 million smartphones were shipped during Q3, which was up 8.1% from the previous quarter and up 0.8% from a year ago, according to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.

Some highlights from IDC

Samsung gained share in 3Q19 with annual growth of 8.3% on the back of the Galaxy Note 10 launch in August and increased A series volumes, with a total of 78.2 million smartphones shipped.

Huawei shipped higher volumes than expected as it shifted focus to its domestic market, particularly in lower-tier cities, and increased inventories given the unknown future with Google Mobile services. While a sentiment of nationalism has helped to bolster Huawei in China, solid relationships with the local channel players has been key, offering favorable distributor terms and a well-rounded product portfolio. Nevertheless, there will be challenges ahead with 4G inventory to clear while consumers wait for affordable 5G products to hit the market.

Apple shipped 46.6 million iPhones in 3Q19, which was a slight decline year over year but still better than most expectations. Apple continues to sell some refurbished iPhones via its own channels, which sustain and possibly grow the installed base, but also impact iPhone revenues. Newer iPhones, specifically the iPhone 11s and XR, did very well this quarter, capturing strong share in important markets like the U.S. and Western Europe.

Xiaomi for the first time saw less than a third of its shipments delivered domestically in China, which was second to India in volume. Domestically, despite its launch of the CC series to appeal to young female consumers, shipments declined under pressure from Huawei. The runway was clearer for Xiaomi in India, however, where it strengthened its offline presence by expanding its sales network via the Mi Store and Mi Preferred Partners.

A total of 358.3 million smartphones were shipped during Q3, which was up 8.1% from the previous quarter and up 0.8% from a year ago, according to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.

Some highlights from IDC

Samsung gained share in 3Q19 with annual growth of 8.3% on the back of the Galaxy Note 10 launch in August and increased A series volumes, with a total of 78.2 million smartphones shipped. The lower-end to midrange A series in particular helped to fill in the gaps left behind by Huawei.

Huawei shipped higher volumes than expected as it shifted focus to its domestic market, particularly in lower-tier cities, and increased inventories given the unknown future with Google Mobile services. While a sentiment of nationalism has helped to bolster Huawei in China, solid relationships with the local channel players has been key, offering favorable distributor terms and a well-rounded product portfolio. Nevertheless, there will be challenges ahead with 4G inventory to clear while consumers wait for affordable 5G products to hit the market.

Apple shipped 46.6 million iPhones in 3Q19, which was a slight decline year over year but still better than most expectations. Apple continues to sell some refurbished iPhones via its own channels, which sustain and possibly grow the installed base, but also impact iPhone revenues. Newer iPhones, specifically the iPhone 11s and XR, did very well this quarter, capturing strong share in important markets like the U.S. and Western Europe.

Xiaomi for the first time saw less than a third of its shipments delivered domestically in China, which was second to India in volume. Domestically, despite its launch of the CC series to appeal to young female consumers, shipments declined under pressure from Huawei. The runway was clearer for Xiaomi in India, however, where it strengthened its offline presence by expanding its sales network via the Mi Store and Mi Preferred Partners.

OPPO also focused its attention outside of China as it approached the tipping point of nearly half of its shipments outside of China with domestic shipments focused on the Reno series and the A9. India experienced the strongest momentum internationally where the Reno series helped complete its product portfolio with higher-end offerings while the online-exclusive K series strengthened its online presence.


https://www.idc.com/getdoc.jsp?containerId=prUS45636719

Thursday, September 26, 2019

IDC: Cloud IT Infrastructure Revenues Decline in Q2

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, declined 10.2% year over year in the second quarter of 2019 (2Q19), reaching $14.1 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $63.6 billion, down 4.9% from last quarter's forecast and changing from expected growth to a year-over-year decline of 2.1%.




Some highlights from IDC:

  • Vendor revenue from hardware infrastructure sales to public cloud environments in 2Q19 was down 0.9% compared to the previous quarter (1Q19) and down 15.1% year over year to $9.4 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings. 
  • After a strong performance in 2018, IDC expects the public cloud IT infrastructure segment to cool down in 2019 with spend dropping to $42.0 billion, a 6.7% decrease from 2018. 
  • Spending on private cloud IT infrastructure has showed more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments. In the second quarter of 2019, vendor revenues from private cloud environments increased 1.5% year over year reaching $4.6 billion. IDC expects spending in this segment to grow 8.4% year over year in 2019.
  • Overall, the IT infrastructure industry is at crossing point in terms of product sales to cloud vs. traditional IT environments. In 3Q18, vendor revenues from cloud IT environments climbed over the 50% mark for the first time but fell below this important tipping point since then. In 2Q19, cloud IT environments accounted for 48.4% of vendor revenues. For the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.0%. Longer-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.
  • Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches while compute platforms and storage platforms are expected to decline in 2019. Ethernet switches are expected to grow at 13.1%, while spending on storage platforms will decline at 6.8% and compute platforms will decline by 2.4%. Compute will remain the largest category of spending on cloud IT infrastructure at $33.8 billion.
  • Sales of IT infrastructure products into traditional (non-cloud) IT environments declined 6.6% from a year ago in Q219. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 5.8%, as the technology refresh cycle driving market growth in 2018 is winding down this year. By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 41.8% of total worldwide IT infrastructure spending (down from 52.0% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • Most regions grew their cloud IT Infrastructure revenues in 2Q19. Middle East & Africa was fastest growing at 29.3% year over year, followed by Canada at 15.6% year-over-year growth. Other growing regions in 2Q19 included Central & Eastern Europe (6.5%), Japan (5.9%), and Western Europe (3.1%). Cloud IT Infrastructure revenues were down slightly year over year in Asia/Pacific (excluding Japan) (APeJ) by 7.7%, Latin America by 14.2%, China by 6.9%, and the USA by 16.3%.

Sunday, September 8, 2019

IDC: Ethernet Switch Market up 4.8% in 2Q19

The worldwide Ethernet switch market (Layer 2/3) recorded revenues of $7.07 billion in the second quarter of 2019 (2Q19), an increase of 4.8% year over year, according to IDC's newly updated Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker. Worldwide total enterprise and service provider (SP) router market revenues grew 3.4% year over year in 2Q19 to $3.96 billion.

Ethernet Switch Market Highlights

  • Port shipments for 100Gb switches rose 58.3% year over year to 4.4 million. 
  • 100Gb revenues grew 42.9% year over year in 2Q19 to $1.28 billion, making up 18.1% of the market's revenue, compared to 13.2% of the market's revenue a year earlier. 
  • 25Gb switches also saw impressive growth, increasing 84.8% to $364.1 million, with port shipments growing 74.5% year over year. 
  • 10Gb port shipments rose 2.6% year over year, to make up 27.9% of the market's revenue. 
  • 1Gb switches grew 6.6% year over year in port shipments, making up 40.0% of the market's total revenues.
  • The Central and Eastern Europe (CEE) region grew 10.8% year over year, with Russia – the region's largest market – growing 9.2% and Poland growing 29.6%. The Middle East and Africa (MEA) region also had strong growth at 10.2%; Qatar led the region's increase with 70.3% growth. Western Europe rose 1.1%, with the Netherlands growing 18.6% within the region.
  • The USA market grew 10.7% while Canada's market grew 3.8%. The Latin America region was off 1.2% after Brazil fell 8.3%.
  • The Asia/Pacific (excluding Japan) (APeJ) region fell 4.2% year over year. 
  • China's market declined 4.7% year over year while Australia's market dropped 16.0%.

Router Market Highlights

  • The worldwide enterprise and service provider router market grew 3.4% on a year-over-year basis in 2Q19, with the major service provider segment, which accounts for 75.9% of revenues, increasing 2.0% and the enterprise segment of the market growing a healthy 8.0%. 
  • The combined service provider and enterprise router market increased 2.7% in APeJ, with the service provider segment increasing 3.8%. 
  • Japan's total market grew 7.0% year over year. 
  • Revenues in Western Europe rose 5.2% year over year, while the CEE combined enterprise and service provider market grew 15.2% year over year. 
  • The MEA region was up 7.4%. 
  • In the USA, the enterprise segment was up 18.8%, but service provider revenues fell 6.4%, causing the total market to decline 0.8% year over year. Canada's market rose 9.2% year over year and the Latin American market grew 8.1%.

Vendor Highlights

  • Cisco finished 2Q19 with an 6.8% year-over-year increase in overall Ethernet switch revenues and market share of 51.1%.  In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 38.8% of the market's revenue. Cisco's campus/branch Ethernet switch revenue increased 14.3% year over year. Meanwhile, Cisco's datacenter switching revenue declined 3.2% year over year in 2Q19. Cisco's combined service provider and enterprise router revenue rose 6.6% year over year, with enterprise router revenue increasing 16.2% and SP revenues growing 1.1%. Cisco's combined SP and enterprise router market share increased to 36.8%, up from 35.7% in 2Q18.
  • Huawei's Ethernet switch revenue rose 18.9% on an annualized basis, giving the company market share of 9.7%. The company's combined SP and enterprise router revenue rose 1.5% year over year with a market share of 31.1%.
  • Arista Networks saw Ethernet switch revenues increase 15.4% in 2Q19, bringing its share to 7.3% of the total market, up from 6.6% a year earlier. 100Gb revenues accounted for 65.4% of the company's total revenue, indicating the company's focus on hyperscale and cloud providers and select large enterprise segments.
  • HPE's Ethernet switch revenue declined 6.3% year over year, giving the company a market share of 5.8%.
  • Juniper's Ethernet switch revenue declined 19.6% in 2Q19, bringing its market share to 2.9%. Juniper saw a 15.0% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.5%.


https://www.idc.com/getdoc.jsp?containerId=prUS45487019

Wednesday, September 4, 2019

IDC: Worldwide server market drops 11.6% in 2Q19

After a torrid stretch of prolonged market growth that drove the server market to historic heights, IDC has found that the global server market declined in 2Q19 for the first time since the fourth quarter of 2016. Vendor revenue in the worldwide server market declined 11.6% year over year to just over $20.0 billion during the second quarter of 2019 (2Q19).



Worldwide server shipments declined 9.3% year over year to just under 2.7 million units in 2Q19.

"The second quarter saw the server market's first contraction in nine quarters, albeit against a very difficult compare from one year ago when the server market realized unprecedented growth," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "Irrespective of the difficult compare, factors impacting the market include a slowdown in purchasing from cloud providers and hyperscale customers, an off-cycle in the cyclical non-x86 market, as well as a slowdown from enterprises due to existing capacity slack and macroeconomic uncertainty."

Some highlights:

  • The number one position in the worldwide server market during 2Q19 was shared* by Dell Technologies and the combined HPE/New H3C Group with revenue shares of 19.0% and 18.0% respectively. 
  • Dell Technologies declined 13.0% year over year, while HPE/New H3C Group was down 3.6% year over year. 
  • The third position went to Inspur/Inspur Power Systems, which increased its revenue by 32.3% year over year. 
  • Lenovo and IBM tied for the fourth position with revenue shares of 6.1%, and 5.9% respectively. 
  • Lenovo saw revenue decline by 21.8% year over year while IBM saw its revenue contract 27.4% year over year. 
  • The ODM Direct group of vendors accounted for 21.1% of total revenue and declined 22.9% year over year to $4.23 billion. 
  • Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 17.8% of all units shipped during the quarter.

https://www.idc.com/getdoc.jsp?containerId=prUS45482519


Wednesday, July 31, 2019

IDC: Worldwide public cloud service revenue hit $183B in 2018

The worldwide public cloud services market grew 27.4% year over year in 2018 with revenues totaling nearly $183 billion, according to results from the 2H 2018 release of the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker.

The growth rate was down slightly from 2018 but is still more than 4.5 times that of the IT industry overall.

"Our latest public cloud data continues to show robust growth – headed toward almost $500 billion by 2023 – and consolidating power positions across the board," said Frank Gens, senior vice president and chief analyst at IDC. "The most intense and strategic consolidation – in the combined IaaS and PaaS segments – is being driven by developers' and enterprises' bets on which vendors will sustainably deliver tech innovation for the next decade and beyond."

"Software as a Service (SaaS) continued to be the most highly deployed cloud segment, representing a commanding 62.4% of the total cloud market revenues, including system infrastructure software (SIS). Adoption of cloud enterprise business applications like ERP, SCM, and HCM also accelerated across all segments with most buyers taking a SaaS-first or SaaS-also posture for new applications," said Frank Della Rosa, research director, Software as a Service at IDC.

Another key finding from IDC:


  • The top 5 public cloud service providers accounted for 46.3% of all spending growth in 2018 and 35% of all 2018 spending, up 3 points from 2017. This continues a consolidation trend in the overall public cloud services market among the leaders, most pronounced in the combined Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) segments, in which the top 5 vendors accounted for a 63% share of spending.

IDC: Smartphone shipments drop 2.3% in Q2

Worldwide smartphones shipments declined 2.3% year over year in the second quarter of 2019, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. China and the United States experiencing the sharpest quarterly declines.

Smartphone vendors shipped a total of 333.2 million phones in 2Q19, which was up 6.5% over the previous quarter.

"Despite a lot of uncertainty surrounding Huawei the company managed to hold its position at number two in terms of market share," said Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers. "When you look at the top of the market – Samsung, Huawei, and Apple – each vendor lost a bit of share from last quarter, and when you look down the list the next three – Xiaomi, OPPO, and vivo – all gained. Part of this is related to the timing of product launches, but it is hard not to assume this trend could continue."

Some highlights:

  • the top 5 vendors accounted for 69% of the total market volume
  • the top 10 vendors accounted for 87%
  • Samsung maintained the top position in the market for 2Q19 and returned to annual growth of 5.5% with a total of 75.5 million smartphones shipped. 
  • Huawei saw its shipment volumes decline 0.6% when compared to 1Q19, which could be regarded as better than expected given U.S.-China trade tensions. 
  • Shipment volumes in China hit an all-time high and accounted for 62% of Huawei's 2Q19 total with 36.4 million units. 
  • Apple shipped 33.8 million new iPhones during 2Q19, which was down significantly from the same quarter a year ago. 
  • Xiaomi experienced a small year-over-year decline during the quarter with a total of 32.3 million smartphones shipped.
  • OPPO performed well in China and India, which together accounted for nearly three-quarters of its shipments in 2Q19. 


Wednesday, July 24, 2019

IDC: SD-WAN market to hit $5.25 billion by 2023

The SD-WAN infrastructure market will grow at a 30.8% compound annual growth rate (CAGR) from 2018 to 2023 to reach $5.25 billion, according to IDC's SD-WAN Infrastructure Forecast.

The SD-WAN infrastructure market to be highly competitive, according to IDC, with sales increasing by 64.9% in 2018 to $1.37 billion.

IDC finds that Cisco holds the largest share of the SD-WAN infrastructure market, fueled by its extensive routing portfolio that is used in SD-WAN deployments, as well as its Meraki portfolio and its SD-WAN management platform powered by technology it acquired from Viptela in August 2017. VMware, with its SD-WAN service powered by VeloCloud (which VMware acquired in December 2017), holds the second-largest market share in the SD-WAN infrastructure market, followed by Silver Peak, Nokia-Nuage, and Riverbed.

"SD-WAN continues to be one of the fastest-growing segments of the network infrastructure market, driven by a variety of factors. First, traditional enterprise WANs are increasingly not meeting the needs of today's modern digital businesses, especially as it relates to supporting SaaS apps and multi- and hybrid-cloud usage. Second, enterprises are interested in easier management of multiple connection types across their WAN to improve application performance and end-user experience," said Rohit Mehra, vice president, Network Infrastructure. "Combined with the rapid embrace of SD-WAN by leading communications service providers globally, these trends continue to drive deployments of SD-WAN, providing enterprises with dynamic management of hybrid WAN connections and the ability to guarantee high levels of quality of service on a per-application basis."

IDC's Market Share and Market Forecast reports focus specifically on the SD-WAN infrastructure market, which includes both hardware and software used in SD-WAN deployments. IDC defines SD-WAN as a dynamic, policy-enabled hybrid WAN that uses at least two or more connection methods (such as MPLS, broadband internet, 3G/4G, etc.) and includes a centralized application-based policy controller that provides intelligent path selection, along with an optional forwarder for routing capability. The SD-WAN infrastructure Market Share and Forecast reports do not include managed services related to SD-WAN, such as setup or operational support, nor do they include connectivity costs.

The IDC SD-WAN Infrastructure Forecast provides an outlook for this market across major regions for the period extending to 2023, including historical numbers through 2017 and forecast numbers from 2019 to 2023. It also provides regional geographic segmentation of the SD-WAN infrastructure market, including market sizes and CAGRs for each major region (North America, EMEA, APJ, Latin America).

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Sunday, July 7, 2019

IDC: Worldwide public cloud spending to double by 2023

IDC is predicting that worldwide spending on public cloud services and infrastructure will more than double over the 2019-2023 period.

The latest update to IDC's Worldwide Semiannual Public Cloud Services Spending Guide forecasts a five-year compound annual growth rate (CAGR) of 22.3%, public cloud spending, taking the market from $229 billion in 2019 to nearly $500 billion in 2023.

"Adoption of public (shared) cloud services continues to grow rapidly as enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to software as a service (SaaS) and from traditional infrastructure to infrastructure as a service (IaaS) to empower customer experience and operational-led digital transformation (DX) initiatives," said Eileen Smith, program director, Customer Insights and Analysis.



Some highlights from IDC:

  • Software as a Service (SaaS) will be the largest category of cloud computing, capturing more than half of all public cloud spending in throughout the forecast. SaaS spending, which is comprised of applications and system infrastructure software (SIS), will be dominated by applications purchases. The leading SaaS applications will be customer relationship management (CRM) and enterprise resource management (ERM). SIS spending will be led by purchases of security software and system and service management software.
  • Infrastructure as a Service (IaaS) will be the second largest category of public cloud spending throughout the forecast, followed by Platform as a Service (PaaS). IaaS spending, comprised of servers and storage devices, will also be the fastest growing category of cloud spending with a five-year CAGR of 32.0%. PaaS spending will grow nearly as fast (29.9% CAGR) led by purchases of data management software, application platforms, and integration and orchestration middleware.
  • Three industries – professional services, discrete manufacturing, and banking – will account for more than one third of all public cloud services spending throughout the forecast. While SaaS will be the leading category of investment for all industries, IaaS will see its share of spending increase significantly for industries that are building data and compute intensive services. For example, IaaS spending will represent more than 40% of public cloud services spending by the professional services industry in 2023 compared to less than 30% for most other industries. Professional services will also see the fastest growth in public cloud spending with a five-year CAGR of 25.6%.
  • On a geographic basis, the United States will be the largest public cloud services market, accounting for more than half the worldwide total through 2023. Western Europe will be the second largest market with nearly 20% of the worldwide total. China will experience the fastest growth in public cloud services spending over the five-year forecast period with a 49.1% CAGR. Latin America will also deliver strong public cloud spending growth with a 38.3% CAGR.
  • Very large businesses (more than 1000 employees) will account for more than half of all public cloud spending throughout the forecast, while medium-size businesses (100-499 employees) will deliver around 16% of the worldwide total. Small businesses (10-99 employees) will trail large businesses (500-999 employees) by a few percentage points while the spending share from small offices (1-9 employees) will be in the low single digits. All the company size categories except for very large businesses will experience spending growth greater than the overall market.


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Thursday, June 20, 2019

IDC: Cloud infrastructure spending to cool down

Vendor revenue from the sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, grew 11.4% year over year in the first quarter of 2019 (1Q19), reaching $14.5 billion, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC lowered its forecast for total spending on cloud IT infrastructure in 2019 to $66.9 billion – down 4.5% from last quarter's forecast – with slower year-over-year growth of 1.6%.

"As the overall IT infrastructure goes through a period of slowdown after an outstanding 2018, the important trends might look somewhat distorted in the short term," said Natalya Yezhkova, research vice president, Infrastructure Systems, Platforms and Technologies at IDC. "IDC's long-term expectations strongly back continuous growth of cloud IT infrastructure environments. With vendors and service providers finding new ways of delivering cloud services, including from IT infrastructure deployed at customer premises, end users have fewer obstacles and pain points in adopting cloud/services-based IT."

Some highlights from IDC:


  • Vendor revenue from hardware infrastructure sales to public cloud environments in 1Q19 was down 13.4% compared to the previous quarter (4Q18) but increased 8.9% year over year to $9.8 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings. 
  • After a strong performance in 2018, IDC expects the public cloud IT infrastructure segment to cool down in 2019 with vendor revenue dropping to $44.5 billion, a 2.2% decrease from 2018. Although it will continue to account for the majority of spending on cloud IT environments, its share will decrease from 69.1% in 2018 to 66.5% in 2019. In contrast, spending on private cloud IT infrastructure has showed more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments. In the first quarter of 2019, vendor revenues from private cloud environments increased 16.9% year over year reaching $4.7 billion. IDC expects spending in this segment to grow 10.1% year over year in 2019.
  • Overall, the IT infrastructure industry is at a crossroads in terms of product sales to cloud vs. traditional IT environments. In 3Q18, vendor revenues from cloud IT environments climbed over the 50% mark for the first time but has since fallen below this important threshold. In 1Q19, cloud IT environments accounted for 48.8% of vendor revenues. 
  • For the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.4%. Over the long-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.
  • Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches and storage platforms while compute platforms are expected to decline in 2019. Ethernet switches will be the fastest growing at 20.9%, while spending on storage platforms will grow slightly at 1.9%. Meanwhile, compute platforms will decline by 2.8% in 2019 but will remain the largest category of spending on cloud IT infrastructure at $34.2 billion.
  • Sales of IT infrastructure products into traditional (non-cloud) IT environments remained flat compared to 1Q18. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 3.5%, as the technology refresh cycle that drove market growth in 2018 is winding down. By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 42.4% of total worldwide IT infrastructure spending (down from 51.9% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • Most regions grew their cloud IT Infrastructure revenues in 1Q19. Middle East & Africa was fastest growing at 35.3% year over year, followed by Western Europe at 25.4% year-over-year growth. Other growing regions 1Q19 included Central & Eastern Europe (18.3%), Canada and Japan (both at 14.6%), the United States (10.7%), and China (5.4%). Cloud IT Infrastructure revenues were down slightly year over year in Asia/Pacific (excluding Japan) (APeJ) by 1.2% and in Latin America by 0.2%.

Tuesday, June 18, 2019

IDC: IoT is expected to generate 79.4ZB of data in 2025

A new forecast from International Data Corporation (IDC) estimates that there will be 41.6 billion connected IoT devices, or "things," generating 79.4 zettabytes (ZB) of data in 2025.

IDC projects that the amount of data created by these connected IoT devices will see a compound annual growth rate (CAGR) of 28.7% over the 2018-2025 forecast period.

Some highlights of the recently published Worldwide Global DataSphere IoT Device and Data Forecast 2019-2023 report:

  • Most of the data is being generated by video surveillance applications, but other categories such as industrial and medical will increasingly generate more data over time.
  • The industrial and automotive category will see the fastest data growth rates over the forecast period with a CAGR of 60%. 
  • Drones, while still early in adoption today, show great potential to access remote or hard to reach locations and will also be a big driver of data creation using cameras.

Thursday, June 13, 2019

IDC: Worldwide Spending on IoT to hit $1.1 trillion in 2023

IDC is predicting booming worldwide spending on the Internet of Things (IoT) with spending exceeding $1.0 trillion mark in 2022 and reaching $1.1 trillion in 2023.

A new update to the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Spending Guide shows the compound annual growth rate (CAGR) for IoT spending over the 2019-2023 forecast period will be 12.6%.

"Spending on IoT deployments continues with good momentum and is expected to be $726 billion worldwide this year," said Carrie MacGillivray, group vice president, Internet of Things, 5G, and Mobility at IDC. "While organizations are investing in hardware, software, and services to support their IoT initiatives, their next challenge is finding solutions that help them to manage, process, and analyze the data being generated from all these connected things."

Highlights:

  • Discrete manufacturing, process manufacturing, and transportation will account for nearly a third of worldwide spend total in 2023. 
  • The consumer market will be the second largest source of IoT spending in 2019, led by smart home and connected vehicle use cases. With the fastest five-year growth rate across all industries (16.8% CAGR), the consumer market is forecast to overtake discrete manufacturing to become the largest source of IoT spending by 2023.
  • Hardware spending is dominated by module/sensor purchases. 
  • Software will be the fastest growing technology category with a five-year CAGR of 15.3% with a focus on application and analytics software purchases.
  • More than three quarters of all spending on IoT platform software – middleware that provides the device management, connectivity management, data management, visualization, and applications enablement for connecting IoT endpoints – will go toward software packages that integrate and support devices, applications, data schemas, and standards of a single industry. 
  • By the end of the forecast, nearly one-third of IoT software spending will go toward public cloud deployments, compared to less than 20% spent on cloud deployments in 2018.
  • The United States and China will account for roughly half of all IoT spending throughout the forecast, followed by Western Europe and Asia/Pacific (excluding Japan and China). 

Sunday, June 9, 2019

IDC: Server market revenue up 4% in 1Q19

The worldwide server market increased 4.4% year over year to $19.8 billion during 1Q19, according to IDC's Worldwide Quarterly Server Tracker.

Worldwide server shipments declined 5.1% year over year to just under 2.6 million units in 1Q19.

Some highlights from IDC:

  • The overall server market slowed in 1Q19 after experiencing six consecutive quarters of double-digit revenue growth although pockets of robust growth remain. 
  • Volume server revenue increased by 4.2% to $16.7 billion, while midrange server revenue grew 30.2% to $2.1 billion. 
  • High-end systems contracted steeply for a second consecutive quarter, declining 24.7% year over year to $976 million.

"Demand from both enterprise buyers and hyperscale companies purchasing through ODMs was less voracious than in previous quarters; coupled with a difficult compare period from a year ago, this impacted the pace of market growth during the first quarter," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "This was most evident in declining unit shipments during the quarter, although year-to-year average selling price (ASP) increases supported revenue growth for many vendors. As long as demand for richly configured servers supports further ASP growth, the market will offset slight declines in unit volume."

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IDC: Enterprise storage capacity shipments grow 14% in Q1, sales dip

Vendor revenue in the worldwide enterprise storage systems market decreased 0.6% year over year to $13.4 billion during the first quarter of 2019 (1Q19), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Storage Systems Tracker.

Total capacity shipments were up 14.1% year over year to 114.2 exabytes during the quarter.

Some highlights from IDC:
  •  datacenters declined 5.3% year over year in 1Q19 to $2.95 billion. This represents 22.1% of total enterprise storage investments during the quarter. 
  • Sales of server-based storage decreased 6.6% year over year to just over $3.6 billion in revenue. This represents 26.6% of total enterprise storage investments. 
  • The external storage systems market revenue totaled nearly $6.9 billion during the quarter, up 5.0% from 1Q18.

"First quarter 2019 results are an acceleration of the slowdown we noted last quarter, with declining ODM and internal (server-based) storage the primary drivers of market contraction." said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "OEM vendors selling dedicated storage arrays still generated growth during the quarter, although slowing flash-centric array growth indicates that the opportunity for existing install-base upgrades is beginning to wane."



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Sunday, June 2, 2019

IDC: Switching market grows 7.8%, routing up 8.2%

According to IDC, the Worldwide Ethernet switch (Layer 2/3) market grew revenues 7.8% in Q1 2019 to $6.8 billion, while the worldwide enterprise and service provider (SP) router market saw revenues increase 8.2% year over year to $3.6 billion.

"Organizations across the globe are looking to digitally transform themselves in an effort to meet market and competitive needs and improve user experiences. As they do so, enterprises are realizing the critical role the network plays in their broader IT transformation initiatives," said Rohit Mehra, vice president, Network Infrastructure, at IDC. "This has led to continued, and growing, investment in Ethernet switching, routing, software-defined networks (SDN), and SD-WAN platforms and architectures that support the increasing demands of an always-connected world."



Some highlights of the newly updated IDC Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker:


  • From a geographic perspective, the 1Q19 Ethernet switch market had a strong quarter across the globe. The Asia/Pacific (excluding Japan) (APeJ) region grew 8.6% year over year. Notable gains in the region included China, which grew 11.7% year over year, and Taiwan, which increased 15.3%. Meanwhile, Japan's Ethernet switch market rose 1.3%.
  • The Middle East and Africa (MEA) region saw growth of 9.5% year over year, led by Egypt, which rose 17.3%. Europe saw more modest growth with Western Europe growing 3.5% and Central and Eastern Europe remaining stagnant with 0.3% year-over-year growth. Notable markets in Western Europe included the United Kingdom, which was down 1.2% from a year earlier, while Germany was up 2.3% and Italy grew 15.5% year over year. In Central and Eastern Europe, Russia declined 13.4% year over year. In the Americas, the United States grew 11.9% while Canada increased 2.6% year over year. Latin America was down 4.5% overall with Brazil's 8.5% year-over-year decline offset by 11.0% growth in Mexico.
  • Port shipments for 100Gb switches rose 85.3% year over year to 3.6 million. 100Gb revenues grew 59.0% year over year in 1Q19 to $1.2 billion, making up 17.3% of the market's revenue. 
  • 25Gb ports also saw impressive growth, increasing 133.3% to $304.0 million, with port shipments growing 104.8% year over year. 
  • 40Gb switches continue to be falling out of favor with revenues declining 21.3% year over year. 
  • Lower-speed campus switches, a more mature part of the market, showed moderate growth. 10Gb port shipments rose 8.6% year over year to make up 28.7% of the market's revenue. 
  • The worldwide enterprise and service provider router market grew 8.2% on a year-over-year basis in 1Q19 with the major service provider segment, which accounts for 75.3% of revenues, increasing 7.1% and the enterprise segment of the market growing 11.9%. 
  • From a regional perspective, the combined service provider and enterprise router market increased 12.0% in APeJ with the enterprise segment up 17.7%. Japan's total market grew 27.1% year over year. Central and Eastern Europe regional revenues rose 19.7% year over year, while the Western Europe combined enterprise and service provider market grew 3.7% year over year. The Middle East & Africa region was up 12.6% fueled by a 15.7% increase in service provider revenues. In the U.S., the enterprise segment was up 15.7% but the service provider revenues fell 5.8%, causing the total market to decline 0.5% year over year. Canada's market rose 28.5% year over year and the Latin American market grew 9.0%.
  • Cisco finished 1Q19 with an 8.3% year-over-year increase in overall Ethernet switch revenues and market share of 53.7%. In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 39.4% of the market's revenue. Cisco's combined service provider and enterprise router revenue rose 15.3% year over year, with enterprise router revenue increasing 16.1% and service provider revenues growing 14.8%. Cisco's combined SP and enterprise router market share increased to 42.4%, up from 37.4% in 4Q18.
  • Huawei's Ethernet switch revenue rose 18.9% on an annualized basis, giving the company market share of 8.9%, up from 8.1% a year earlier. The company's combined service provider and enterprise router revenue rose 5.7% year over year with a market share of 24.5%.
  • Arista Networks saw Ethernet switch revenues increase 24.0% in 1Q19, bringing its share to 7.5% of the total market, up from 6.5% a year earlier. The company continues to cater to the higher end of Ethernet switch speeds, with 100Gb revenues accounting for 67.6% of the company's total revenue, indicating the company's focus on hyperscale and cloud providers.
  • HPE's Ethernet switch revenue declined 5.6% year over year, giving the company a market share of 5.3%.
  • Juniper's Ethernet switch revenue declined 23.4% in 1Q19, bringing its market share to 2.6%. Juniper saw an 8.2% decline in combined enterprise and service provider router sales, bringing its market share in the router market to 10.4%.

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Wednesday, May 15, 2019

IDC: Worldwide semiconductor revenue to dip 7.2% in 2019

International Data Corporation (IDC) is predicting that worldwide semiconductor revenue will decline to $440 billion in 2019, down 7.2% from $474 billion in 2018. This follows three consecutive years of growth, with year-over-year growth of 13.2% in 2018.

Other key findings from IDC's Semiconductor Application Forecaster (excluding memory) include:

  • While the computing industry experienced strong growth in 2017 and 2018, the SAF forecasts semiconductor revenue for the computing industry segment to decline 5.1% this year but will show a positive CAGR of 1.3% for the 2018-2023 forecast period. Two bright spots for the computing segment are x86 servers and SSDs, growing with an 11.3% and 9.8% CAGR respectively for 2018-2023.
  • Semiconductor revenue for the mobile wireless communications segment will grow 1.8% year over year this year with a CAGR of 4.8% for 2018-2023. Semiconductor revenue for 4G mobile phones will experience a slowdown as 5G phones begin to ramp up in 2020, becoming mainstream by the middle of the next decade. RF subsystem in mobile devices will continue to drive the majority of the revenue growth as the subsystem continues to support more complexity, additional antennas, and the increase in bands on every phone.
  • The consumer semiconductor segment will grow at a 6.4% CAGR for 2018-2023 as consumer IoT devices and home automation continue to gain traction and scale. Connected devices will continue to drive more sensors and processing at the edge.

"The current market downturn is being driven by a broad weakness in demand specifically centered in China and an ingestion of excess inventories in some of the major markets including automotive, mobile phones, and cloud infrastructure," said Mario Morales, program vice president, Semiconductors at IDC. "We expect the market to bottom by end of the third quarter this year as we work through inventories and demand begins to gradually return. Cloud infrastructure investment, 5G mobile devices, WiFi 6 adoption, Smart NICs, automotive sensors, powertrain technologies, AI training accelerators, and edge inference SoCs will be instrumental in our growth expectations for 2020 and beyond."

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See also