Ethernet Gear Investments Will Grow Over Next 5 Years


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Globally, service providers invested $21.6 billion in carrier Ethernet products in 2009, and will increase spending over at least the next five years, according to Infonetics Research.
Service provider investment in carrier Ethernet is growing faster than overall telecom capital expenditures, so it is one of the areas that defied the economic downturn, says Michael Howard, Infonetics Research principal analyst.
Infonetics Research forecasts carrier Ethernet equipment revenue will grow to over $32 billion in 2014, up from $21.6 billion in 2009, driven chiefly by the move to IP next-generation network transformation projects and growing trafficm, particularly video traffic.
The largest segments of the carrier Ethernet equipment market are routers, carrier Ethernet switches and optical gear, with Ethernet microwave being the fastest growing segment of the market, driven by mobile backhaul requirements.
Revenue from specialized Ethernet access devices, typically not routers or switches, but designed with demarcation and OAM functions to deliver E-LINE and E-LAN services, is expected to more than triple from 2009 to 2014.
Cisco continues to be the worldwide revenue market share leader in the carrier Ethernet switch, Ethernet IP core router, and Ethernet IP edge router markets.

Globally, service providers invested $21.6 billion in carrier Ethernet products in 2009, and will increase spending over at least the next five years, according to Infonetics Research.

Service provider investment in carrier Ethernet is growing faster than overall telecom capital expenditures, so it is one of the areas that defied the economic downturn, says Michael Howard, Infonetics Research principal analyst.

Infonetics Research forecasts carrier Ethernet equipment revenue will grow to over $32 billion in 2014, up from $21.6 billion in 2009, driven chiefly by the move to IP next-generation network transformation projects and growing trafficm, particularly video traffic.

The largest segments of the carrier Ethernet equipment market are routers, carrier Ethernet switches and optical gear, with Ethernet microwave being the fastest growing segment of the market, driven by mobile backhaul requirements.

Revenue from specialized Ethernet access devices, typically not routers or switches, but designed with demarcation and OAM functions to deliver E-LINE and E-LAN services, is expected to more than triple from 2009 to 2014.

Cisco continues to be the worldwide revenue market share leader in the carrier Ethernet switch, Ethernet IP core router, and Ethernet IP edge router markets.

by Gary Kim

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4 Responses to “Ethernet Gear Investments Will Grow Over Next 5 Years”

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