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Carrier Ethernet Services Market to Reach Nearly $11.1 Billion by 2016

 
September 12, 2011
By Rajani Baburajan, TMCnet Contributor

A recent market analysis from Insight Research finds that consumer and business spending on Carrier Ethernet services will nearly triple over five years to more than $44 billion.

With metro-area and wide-area Ethernet services readily available from virtually all major data service providers, the market is expected to grow from $4.0 billion in 2011 to reach nearly $11.1 billion by 2016, according to the research.

The study, "Carriers and Ethernet Services: Public Ethernet in Metro & Wide Area Networks, 2011-2016," attributes this growth mainly to the Ethernet's ability to meet seemingly endlessly growing bandwidth demands at lower cost and with greater flexibility than competing services.

The new high-bandwidth 40- and 100- Gigabit/s services, which are proceeding slowly, will gain prominence during the 2011-2016 forecast period, according to the research.

Wireless backhaul is the fastest-growing sector within the Ethernet marketplace, according to the research, according to Robert Rosenberg, president of Insight Research.

"Ethernet can provide the necessary backhaul at lower unit costs and with greater flexibility than the older technology,” Rosenberg added. “The market continues to be paced by voracious bandwidth demands from its longstanding key verticals such as finance, schools, government and healthcare--whose data transmission requirements continue to grow rapidly.”

 Recently Dell’ (News - Alert)Oro’s latest quarterly market research report indicated that the Ethernet Switch market expanded eight percent sequentially in L2-L3 switching.

Cisco (News - Alert) and HP headed the growth in both the fixed and modular Ethernet Switching categories. Juniper and Dell did well to be among the top four in the fixed category but failed to figure in the modular, the research said.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Rich Steeves
 
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