IHS: Ethernet Access Device Market Rises 4% in H1 2016; ADVA is #1

By Richard Webb, research director, mobile backhaul and small cells, IHS Markit

Bottom Line:

  • Worldwide Ethernet access device (EAD) revenue reached $516 million in the first half of 2016 (H1 2016), 4 percent higher than the second half of 2015 (H2 2015)
  • Spending in the Ethernet over time-division multiplexing (EoTDM) segment declined in H1 2016, but both fiber and Ethernet in the first mile (EFM) increased
  • In H1 2016, ADVA was the market leader for EAD revenue, based on the combined market shares of ADVA and Overture, which it acquired early in 2016


IHS Analysis:

Globally, EAD revenue reached $516 million in H1 2016, owing to the continued adoption of Ethernet connections in mobile backhaul, broadband, business and carrier wholesale applications. Segment-wise, EoTDM declined by 3 percent, but fiber grew 4 percent and EFM increased 4 percent.

Although fiber is the future of the EAD market, copper continues to play an important but limited role for Ethernet services. But the use of copper is declining in lower-speed segments; for example, 100M copper EAD ports dipped 12 percent in H1 2016 from H2 2015.

In H1 2016, ADVA became the new EAD revenue market share leader, boosted by its acquisition of Overture. Previous market leader Ciena was number-two, followed by RAD, Actelis and MRV.

North America remains the largest market for EADs, garnering 58 percent of EAD revenue in H1 2016, trailed by EMEA, Asia Pacific and CALA.

The EAD market is projected to grow through 2020, when it will hit $1.35 billion—achieving a 2015 to 2020 compound annual growth rate (CAGR) of
7 percent, largely driven by business, broadband and building applications, the largest market segment by that point, overtaking mobile backhaul.

EAD Report Synopsis:

The biannual IHS Markit Ethernet Access Devices (EADs) report tracks fiber and copper (EFM bonded and EoTDM bonded) EADs by port speed, form factor and application. The report provides worldwide and regional market size, vendor market share, forecasts through 2020, analysis and trends.

For information about purchasing this report, contact the sales department at IHS Markit in the Americas at (844) 301-7334 or[email protected]; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or [email protected]; or Asia-Pacific (APAC) at +604 291 3600 or [email protected]


Related presentation at 2016 ECOC on 100G DWDM markets (including edge/access):