NOVEMBER 1, 2007 -- Worldwide sales of metro Ethernet equipment are forecast to nearly double between 2006 and 2010, when they will reach $18.8 billion, according to "Metro Ethernet Equipment," a new report from Infonetics Research (search for Infonetics).
According to the report, the hottest selling technologies in the metro Ethernet market are routers and Carrier Ethernet switches (CES), Ethernet over optical, and Ethernet over DSL.
"The metro Ethernet market picked up some steam in the last six months. From 2006 to 2007, port shipments will increase in every metro Ethernet equipment category we track, and we'll see revenue growth in all categories except Ethernet over DSL and cable. The slight decline in Ethernet over DSL and cable revenue is due to price erosion, as ports are up," said Michael Howard, principal analyst and co-founder of Infonetics Research.
More highlights from the report include:
- Main drivers fueling the metro Ethernet market: Ethernet is less expensive than other technologies; broadband subscriber numbers are skyrocketing, forcing service providers to upgrade their networks with DSL, cable, PON, and Ethernet FTTH; and rapid uptake in video and IPTV services are creating traffic increases that require more bandwidth, stringent QoS, and network transformations.
- Worldwide revenue from bonded copper Ethernet access devices (EADs) will nearly double from 2006 to 2007, fueled by rapid Ethernet services uptake.
- Sales of Ethernet microwave equipment are skyrocketing, up 631% in 2007 from 2006.
- IP routers and CES will make up 52% of the total metro Ethernet equipment market in 2007; Ethernet microwave's share will more than quadruple between 2007 and 2010.
- ADVA Optical leads worldwide EAD revenue in 2006 with about a third of the market, due to strong fiber deployments; ADTRAN is second based on its bonded copper products.
- Asia Pacific will account for 37% of all metro Ethernet equipment revenue in 2007, North America for 30%, EMEA 28%, and CALA 5%.
Download highlights of the report here.