Metro Ethernet an Emerging Juggernaut
11/5/2007 -- If Ethernet is a juggernaut, then metro Ethernet is shaping up to be a sort of epi-juggernaut in its own right. According to market watcher Infonetics Research, worldwide sales of metro Ethernet equipment should nearly double over the next three years, topping out at $18.8 billion.
That's an impressive growth rate to be sure -- and it looks like metro Ethernet growth only just started skyrocketing.
"The metro Ethernet market picked up some steam in the last six months," said Michael Howard, principal analyst and co-founder of Infonetics Research, in a statement. "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."
According to Infonetics, the hottest metro technologies are routers and carrier Ethernet switches, Ethernet over optical, and Ethernet over DSL.
What's fueling metro Ethernet's runaway growth? A number of factors, principally Ethernet's low cost. Elsewhere, Infonetics pointed out, broadband subscriptions continue to explode, compelling service providers to upgrade their networks with DSL, cable, PON and Ethernet FTTH technologies.
That's not all. Infonetics also cited growing uptake of bandwidth-hungry services such as video and IPTV. Adoption of both technologies has helped fuel a massive traffic increase that requires greater bandwidth, stringent QoS and network transformations, according to Infonetics.
Drilling down, Infonetics said, sales of bonded copper Ethernet access devices (EADs) should nearly double this year, fueled by (drum roll, please) rapid Ethernet services uptake. Elsewhere, sales of Ethernet microwave gear are surging, with a 631 percent increase from 2006 to 2007. --Stephen Swoyer
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