According to Telecom analyst firm, Ovum, it has been revealed that the global enterprise Ethernet services market will exceed US$62bn by 2018, with the market growing at a 13.6 percent compound annual growth rate (CAGR) from 2012.
For 2013, the Ethernet market is projected to be up 16 percent, reaching US$33.8bn.Regionally, Ovum is projecting steady growth for North America at 11 percent CAGR for revenue from 2012–18. Meanwhile, EMEA has a higher growth potential at 14.9 percent CAGR based on carrier activities in Eastern Europe and the Middle East. In the Asia-Pacific region, excluding Japan, the growth forecast is at 23.9 percent based on a growing Ethernet market in China and the ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand, and Vietnam). Japan, the largest Ethernet market in Asia-Pacific at US$6.5bn in 2012, is projected to continue at a mature market CAGR of 5.3 percent.
Ian Redpath, Principal Analyst, Network Infrastructure at Ovum said, Ethernet and IP VPN are the two essential data-optimized WAN connectivity technologies that are supplanting many legacy data connectivity technologies. Enterprises continue to combine previously separated voice and data networks into one converged Ethernet network connection, are comfortable in doing so, and are happy to reap the connectivity savings.
He further added, CSPs will need to continue to sharpen their differentiators: access, interconnection, cost base, service wrap, and bundle propositions.
Ovum projects the 100GE market will start modestly. Deployments are likely in CSPs’ wholesale and high-capacity data center interconnect types of applications, but will broaden in time in major network global hub and data center dense markets.
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