Sunday, May 12, 2013

Infonetics: Slow and Steady Growth Forecast for Carrier Ethernet


The global carrier Ethernet equipment market declined 3% to $34 billion in 2012, following a 13% spike in 2011, but is forecast to grow to $39 billion in 2017, according to a new report from Infonetics.


Some highlights of the report:

  • Spending on IP edge routers totaled $9.4 billion in 2012, the most of any carrier Ethernet equipment segment
  • 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.

“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.”

http://www.infonetics.com

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