July 23, 2004 San Jose, CA -- Worldwide metro Ethernet equipment revenue totaled $3 billion in 2003 and is projected to grow 157% to $7.7 billion in 2007, according to Infonetics Research's "Metro Ethernet Equipment" market size and forecast service. Metro Ethernet ports are growing strongly as well, increasing 440% between 2003 and 2007.
Close to $25 billion will be spent worldwide on Ethernet in metro networks between 2003 and 2007. Every year over the next 10 years, Ethernet will account for a larger portion of metro capex, driving double-digit growth through 2007, the market research and consulting firm predicts.
"Routers with Ethernet interfaces and Ethernet switches continue to be the mainstay products of the metro Ethernet market, together representing about two-thirds of the market. But Ethernet over SONET is growing quickly and now represents nearly a quarter of all metro Ethernet revenue," said Michael Howard, Infonetics Research principal analyst. "This makes sense, as there are an estimated 375,000 SONET and SDH rings in the world, and Ethernet over SONET allows providers who invested in these rings to meet customer demand for faster, more flexible service via Ethernet. It also simplifies their networks, making it easier to carry fast growing data and TDM traffic at the same time."
Current metro Ethernet equipment market highlights include:
- Cisco leads worldwide revenue market share for Ethernet over SONET/SDH, just barely edging out Alcatel, with Fujitsu close behind.
- Nortel leads worldwide revenue market share for Ethernet over WDM, followed by ADVA and then Cisco.
- Two important standards were passed last month that will affect the market positively, RPR 802.17 (Resilient Packet Ring) and IEEE 802.3ah (Ethernet in the First Mile).
- Customer-located equipment and provider-located equipment make up fairly equal shares of the total worldwide metro Ethernet equipment market revenue.
- The bulk of metro Ethernet equipment revenue continues to come from the Asia Pacific region, followed by North America and then EMEA.
- Japan is working toward its goal of connecting 30 million consumers and SOHOs at 10 Mbits/sec and 10 million at 100 Mbits/ec by 2006.