Ethernet service revenue to grow 300% by 2018 says Infonetics

Revenue from Ethernet services delivered on 10 and 100 Gigabit Ethernet is forecast to grow 300% between 2013 and 2018, according to the latest report from Infonetics Research.

Revenue from Ethernet services delivered on 10 and 100 Gigabit Ethernet is forecast to grow 300% between 2013 and 2018, according to the latest report from Infonetics Research.

This increase will be driven by demand for cloud services accessed via IP virtual private networks (VPNs), Ethernet services, and mobile backhaul transport over Ethernet services, the market research firm says.

These figures come from Infonetics' "2014 Ethernet and IP MPLS VPN Services" report, which analyzes the market for wholesale and retail Ethernet services and managed and unmanaged Layer 2 and Layer 3 IP MPLS VPN services.

"Ethernet services continued to gain momentum in 2013, easily outpacing IP MPLS VPN services. Both segments are growing at a healthy clip and will continue to do so, with Ethernet services growing about twice as fast as IP MPLS VPNs through 2017," said Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research.

The combined global Ethernet services and IP MPLS VPN services markets totaled $62.6 billion in 2013, up 12% from the year prior, he says.

In 2013, Asia Pacific made up the biggest share of Ethernet services revenue and will continue to do so through 2018.

Howard added, "Software-defined networking (SDN) and network functions virtualization (NFV) technologies will change the way service providers operate their networks and, more important, how they deliver services. The biggest change will come in the types of security services offered over IP MPLS VPNs and Ethernet services -- for example, firewalls, SSL VPNs, intrusion detection, parental controls -- and the pace at which they're made available."

Infonetics' annual IP MPLS VPN and Ethernet services report provides market size, forecasts through 2018, analysis, and trends for wholesale and retail Ethernet services (Internet and WAN access, E-LINE, E-LAN services) by speed, and managed and unmanaged Layer 2 and Layer 3 IP MPLS VPN services. Data is presented by country (US, Canada) and region: North America; Europe, Middle East, Africa (EMEA); Asia Pacific; Caribbean, Latin America (CALA); and worldwide.

For more information on Carrier Ethernet equipment and suppliers, visit the Lightwave Buyer’s Guide.

Want to learn more about Ethernet innovation? Attend the Lightwave Optical Innovation Summit
The Lightwave Optical Innovation Summit will feature panels and presentations that will illuminate where optical innovation is required in carrier and enterprise/data center networks, what it should look like, and when it might appear. A wide range of experts from the user, technology development, academic, and analyst communities will offer their views on innovation in a variety of areas, including Ethernet. Find out more about the Summit, which will be held in Austin, TX, July 14-16, at the Lightwave Optical Innovation Summit website.

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