Infonetics: Carrier Ethernet market declined in 2012, but expected to be $39B by 2017

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Market research firm Infonetics Research released excerpts from its latest Carrier Ethernet Equipment market size and forecast report, which tracks investment in, penetration of, and use of carrier Ethernet products in service provider networks.

 

  • The global carrier Ethernet equipment market declined 3% to $34 billion in 2012, following a 13% spike in 2011.
  • Spending on IP edge routers totaled $9.4 billion in 2012, the most of any carrier Ethernet equipment segment.
CARRIER ETHERNET EQUIPMENT MARKET HIGHLIGHTS
  • Asia Pacific currently accounts for the greatest portion of carrier Ethernet equipment revenue, followed by EMEA (Europe, the Middle East, and Africa); by 2017, Infonetics expects North America will have passed EMEA to become the 2nd largest carrier Ethernet market
  • Infonetics projects Carrier Ethernet equipment ports will top 95 million worldwide by 2017, with 10 Gigabit Ethernet growing fast to pass 1 Gigabit Ethernet
 

ANALYST NOTE

“Carrier Ethernet is now a permanent, inseparable part of service provider networks, and the market has reached a steady state of investment as a result,” notes Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. “Though spending on legacy technologies like SONET/SDH and WDM will decline, investment in IP routers, carrier Ethernet switches, and Ethernet access devices will continue to rise, driven by the move to IP NGN and, of course, growing traffic—particularly video traffic.” 
Howard adds: “We see the carrier Ethernet market growing slow but steady over the next 5 years, reaching about $39 billion in 2017.”
CARRIER ETHERNET REPORT SYNOPSIS
 Infonetics’ annual Carrier Ethernet report provides worldwide and regional market size, forecasts through 2017, analysis, and trends for the Ethernet portion of equipment used in carrier networks, including switches, IP core and edge routers, SONET/SDH, WDM, VDSL, Ethernet access device (EAD), EPON, and microwave equipment, as well as ports by speed. Companies tracked: Actelis, ADTRAN, ADVA, Alcatel-Lucent, Brocade, BTI Systems, Calix, Ceragon, Ciena, Cisco, Cyan, DragonWave, Ericsson, Extreme, Fujitsu, Huawei, Infinera, Juniper, NEC, Nokia Siemens Networks, RAD Data, Telco Systems, Tellabs, Transmode, Zhone, ZTE, and others.

Ethernet Access Devices (EAD) MARKET Report- released April 18, 2013

“People keep saying that copper’s dead, but it’s not—it has a limited but important role for Ethernet services, as evidenced by the continued growth of EFM (Ethernet in the first mile) bonded copper,” notes Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. “EFM’s high capacities and reach make it a useful and effective alternative where fiber isn’t justified.”

Continues Howard, “While fiber EADs represent the majority of the EAD market, we expect operators to spend a cumulative $1.5 billion on EFM bonded copper EADs over the next 5 years (out of a cumulative $5.8 billion total for all EADs) as they increase the capacity and efficiency of mobile backhaul networks and business connections.”
EAD MARKET HIGHLIGHTS
  • For the full year 2012, the global Ethernet access device (EAD) market grew 3.5%, to $860 million, with growth hesitating as a result of economic conditions and a lull in carrier spending in the 2nd half of 2012
  • 10/100M copper and 1G fiber dominate EAD ports today, but 10G fiber is growing fast, forecast by Infonetics to grow at a 117% CAGR through 2017
  • Though in slow decline, Ethernet over TDM (EoTDM) bonded circuits will remain a niche market, providing an inexpensive way to combine several E1s or T1s
  • For the second consecutive year, the top 5 revenue share leaders in the EAD market are (in alphabetical order) Actelis,  ADVA, Ciena, Overture, and RAD

EAD REPORT SYNOPSIS

Infonetics’ biannual Ethernet access devices report provides worldwide and regional market size, vendor market share, forecasts through 2017, analysis, and trends for copper and fiber EADs and ports by speed. Companies tracked: Accedian, Actelis, ADTRAN, ADVA, Canoga Perkins, Ciena, FibroLAN, IPITEK, MRV, Omnitron OMS, Overture, RAD, Tellabs, Telco Systems, Zhone, and others.

 

To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

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