OCTOBER 26, 2006 -- Led by strong growth in Ethernet over copper and cable products and Carrier Ethernet switches and routers, worldwide sales of metro Ethernet equipment are surging, from just under $5 billion in 2005 to over $15 billion in 2009, says a new report by Infonetics Research (search for Infonetics Research).
According to the report, "Metro Ethernet Equipment Worldwide Market Size and Forecasts," metro Ethernet equipment sales will accumulate $49.6 billion over the five-year period between 2005 and 2009.
"Ethernet has almost universal appeal to carriers and their customers because it helps lower their telecom costs," says Michael Howard, principal analyst and co-founder of Infonetics Research. "Service providers increasingly deploy Ethernet solutions for a variety of uses, but mainly to offer new revenue-generating services. The two most popular types of Ethernet equipment are Ethernet over copper and cable and carrier-class Ethernet switches and routers, which together will make up over two-thirds of the overall metro Ethernet market by 2009. Ethernet access devices (EADs) are a particularly fast-growing segment, reaching about $685 million in 2009, as BT, BellSouth, COLT, Verizon, AT&T, and other large providers increasingly use them to roll out Ethernet and mobile backhaul services."
Report highlights:
- Worldwide sales of carrier Ethernet switches and routers hit $2.1 billion in 2005 and will more than double to $4.6 billion in 2009.
- Metro Ethernet port shipments are projected to skyrocket in the next few years, increasing more than 700% between 2005 and 2009; the majority of ports sold will be VDSL copper ports and EPON ports.
- Every year Ethernet will account for a larger portion of metro capex.
- North America accounted for 34% of all metro Ethernet equipment revenue in 2005, Asia Pacific for 33%, EMEA for 30%, and CALA for 3%; through 2009, Asia Pacific will take share from other regions due to the stronger concentration of fast-growing VDSL and EPON in the region.
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