The Global Market for Carrier Ethernet Equipment is Projected to Reach US$38 Billion by 2020

Rising Adoption of Carrier Ethernet Services Drives the Global Carrier Ethernet Equipment Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on the Carrier Ethernet Equipment. The global market for Carrier Ethernet Equipment is projected to reach US$38 billion by 2020, driven by the increasing global data traffic and rising adoption of carrier Ethernet services.

Carrier Ethernet refers to the utilization of high-bandwidth Ethernet technology in Internet access as well as in communication for government, business, and academic LANs (Local Area Network).Carrier Ethernet employs hardware and software to improve connectivity, along with maintenance and management services beyond standard Ethernet, offering performance equal to other carrier grade network transport protocols, ideal for MAN (Metropolitan Area Networks) as well as WAN (Wide Area Networks). The technology is touted to offer scalability of up to 100Gig and beyond, while the market for IP Edge is generally restricted to 1 to 10 Gigs speed. Carrier Ethernet, also called Carrier Grade or Carrier Class, represents a system or network with demonstrated reliability and offers compliance with extremely high standard of performance. CE (carrier Ethernet) services have recorded adoption in numerous business verticals as a measure of boosting productivity, effective scaling of network, controlling costs as well as enhancing business agility. Carrier class or grade systems are generally engineered for quick fault recovery, generally in less than 50 milliseconds. The significant increase in IP traffic by about five-folds over the years, which is set to continue to increase at the same pace in the ensuing years, as well as the need for higher bandwidth, arising from the increasing use of mobile broadband and other wireless technologies, is a major factor entailing the need for scalable network infrastructure such as carrier Ethernet equipment.

Future growth in the market will be driven by the increasing usage of online applications (apps) such as online gaming and IPTV (Internet Protocol Television), which require higher bandwidth. Other important growth drivers include the expanding video, voice, and data traffic resulting from increasing adoption of virtualization, cloud computing, and machine-to-machine  connections, all of which place immense pressure on service provider networks and entail increased bandwidth. Additionally, the shift to advanced networks such as LTE, owing to the endemic rise in multimedia downloads and uploads, and growing demand for new and innovative data applications, is adding pressure on mobile backhaul networks. With service providers keen on technologies allowing the versatile transport of 2G/3G as well as LTE traffic, carrier Ethernet is increasingly viewed as a relatively inexpensive and less complex option thus benefiting market prospects.

As stated by the new market research report on Carrier Ethernet Equipment, Asia-Pacific represents the largest market worldwide. The region also represents the fastest growing market with a CAGR of 4.1% over the analysis period driven by China and India, which represent two of the region’s largest markets for Internet and mobile devices proliferation. In terms of Carrier Ethernet equipment, Edge Routers represent the largest category, while Wavelength-Division Multiplexing (WDM) equipment is forecast to emerge as the fastest growing category with a CAGR of 6.0% over the review period. 

Key players covered in the report include ADVA Optical Networking SE, Alcatel-Lucent, Arista Networks Inc., Cisco Systems Inc., Hewlett-Packard Company, Huawei Technologies Co. Ltd., Juniper Networks Inc., Tejas Networks, Vitesse Semiconductor Corp., and ZTE Corporation, among others.

The research report titled “Carrier Ethernet Equipment: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the global carrier Ethernet market, key market trends, growth drivers, mergers, acquisitions and other strategic industry activities of major companies. The report provides market estimates and projections in US$ for all major geographic markets, including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, and Rest of Asia-Pacific), Latin America, and Rest of World. Segments analyzed for the global market include Core Routers, Edge Routers, Carrier Ethernet Switches, Microwave Equipment, SONET/SDH Equipment, WDM Equipment, and Others (VDSL, EPON, and EADs).