Worldwide Gigabit Ethernet market to net $44 billion by 2005

Oct. 31, 2001
Oct. 31, 2001--Ethernet is moving beyond its LAN roots and into the access, MAN, and WAN markets around the world. According to a new report from Boston-based Pioneer Consulting LLC, the worldwide Gigabit Ethernet market will see steady growth over the next five years, to net $44 billion by 2005.

Ethernet is moving beyond its LAN roots and into the access, MAN, and WAN markets around the world. According to a new report from Boston-based Pioneer Consulting LLC, the worldwide Gigabit Ethernet market will see steady growth over the next five years, to net $44 billion by 2005.

Moreover, total worldwide equipment sales from all types of Ethernet will jump from $17.3 billion in 2001 to $145.2 billion by the end of the forecast period. The North American metro market will represent the best market opportunity for Ethernet equipment.

According to Doug McEuen, senior market analyst in optical networking, North America will dominate the Ethernet market, due to its intense competitive environment, leadership in equipment production and supply, and concentration of Internet traffic.

These findings beg the question: Can Ethernet successfully challenge alternative technologies like DWDM and next-generation SONET/SDH for acceptance in the access, MAN, and WAN? According to Pioneer analysts, additional technological advancements, including the continuous refinement of existing Gigabit Ethernet technologies and the development of resilient ring technology, will provide the resources to wage a successful battle against established technologies.

"The lower costs of Gigabit-Ethernet equipment make it extremely attractive to financially strapped carriers," asserts Paul Kellett, senior director of research at Pioneer. "However, carrier-class reliability and quality of service must be clearly demonstrated to carriers to achieve further market penetration."

Pioneer also forecasts an increasing market opportunity for Ethernet service providers; worldwide ESP revenue is expected to jump from $217.2 million to more than $14 billion by 2005.

The report, "Gigabit Ethernet: Equipment and Service Provider Opportunities in Multiple Markets," examines the market opportunities and advantages of Gigabit Ethernet and Ethernet as they challenge DWDM and next-generation SONET/SDH for acceptance across the major markets. For more information or to purchase a copy of the report, visit the company�s Web site at www.pioneerconsulting.com or call (617) 424-5200.

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