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  Press Contact:
Michael Howard
Co-founder and Principal Analyst
Carrier and Data Center Networks
Infonetics Research
(408) 583-3351
michael@infonetics.com
twitter: infonetics


Carrier Ethernet market defying downturn

 

Campbell, CALIFORNIA, April 6, 2009—Market research firm Infonetics Research released the first edition of its biannual Carrier Ethernet Equipment report last week. Highlights from the market size, market share, and forecast report follow.

ANALYST NOTE

“The economic downturn favors carrier Ethernet technologies and products, as they are a less expensive alternative to legacy equipment. In fact, service provider investment in carrier Ethernet equipment is growing faster than overall telecom capex. Carrier Ethernet is one of the key technologies globally integral to IP next gen network transformation projects pushing the move from TDM to packet based networks. These IP NGN projects depend heavily on IP, MPLS, and Ethernet, and gradually will employ the use of Ethernet transport instead of SONET/SDH. Service providers spent $17 billion on carrier Ethernet equipment in 2008, and will increase their spending every year at a healthy clip over the next 5 years."


Michael Howard, Principal Analyst - Optical, Routing, Switching, and Ethernet - Infonetics Research


MARKET RESEARCH REPORT HIGHLIGHTS

  • The carrier Ethernet equipment market is forecast by Infonetics to top $32 billion in 2013, driven by the need to handle fast-growing traffic from consumer, business, and mobile backhaul networks, including skyrocketing video traffic
  • The largest investments will be in IP core and edge routers, carrier Ethernet switches (CES), and optical gear
  • Ethernet microwave is expected to be the fastest growing segment based on its use for mobile backhaul
  • Many service providers use Ethernet to attract new customers with a lower cost-per-bit than traditional WAN services, and at the same time reduce capex and opex by installing a single 100M or GE link to initially sell lower speeds, but upsell to higher speeds later without changing equipment at either the CO or customer location
  • Mobile backhaul, rapid service provider rollout, and customer uptake of Ethernet connections and services drives the need for EADs, specialized Ethernet access devices designed with demarcation and OAM functions to deliver E-LINE and E-LAN services
  • Worldwide sales of EADs are forecast to increase at a compound annual growth rate (CAGR) higher than carrier Ethernet equipment in general, and much higher than the slowly growing CAGR of telecom capex


REPORT SYNOPSIS

Infonetics’ worldwide and regional Carrier Ethernet Equipment report tracks CES, IP core and edge routers, SONET/SDH equipment, WDM equipment, VDSL, G.SHDSL, fiber and copper EADs, EPON, Ethernet and dual Ethernet/TDM microwave equipment, and carrier Ethernet ports by speed.


The report shows market share standings for Actelis, ADTRAN, ADVA, Alcatel-Lucent, Ciena, Cisco, Corrigent, ECI, Ericsson, Extreme, Foundry, Fujitsu, Hitachi Cable, Huawei, Infinera, Juniper, NEC, Nokia Siemens, Nortel, RAD Data, Redback, Sycamore, Tellabs, Transmode, Zhone, ZTE, and others.


The Carrier Ethernet Equipment service includes 3 components: a Market Size, Share, and Forecast report; a Market Analysis report; and a Fundamental Telecom/Datacom Market Drivers report.


DOWNLOAD OR BUY THIS REPORT

To download this report if your organization has purchased it, or to download sample data from the report, log on to the portal above. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.


Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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"Service provider investment in carrier Ethernet equipment is growing faster than overall telecom capex."

Michael Howard
Principal Analyst, Infonetics Research
Carrier Ethernet Equipment