Worldwide Metro Ethernet equipment revenue hit $2.5 billion in 2002 and is projected to grow 131 percent to $5.7 billion by 2006, according to a new forecast from Infonetics Research. Worldwide Metro Ethernet equipment ports hit 756,000 in 2002 and will grow 337 percent to 3.3 million by 2006.
"In the next 10 years, Ethernet will inexorably take over the metro," stated Michael Howard, principal analyst and co-founder of Infonetics Research. "Of course, there will never be a wholesale change because of the SONET/SDH installed base, but every year Ethernet will account for a larger portion of metro CapEx. Between 2002 and 2006, Ethernet will make major inroads into metro telecom equipment spending, accumulating $18.9 billion."
This spending is driven by the fact that more and more customers are demanding Ethernet services, lower prices, and the convenience of incremental bandwidth from their service providers. Even with CapEx pressures, service providers must respond to customers or lose them to a competitor, so they're investing in metro Ethernet equipment.
This report separately tracks revenue from customer and building premises equipment and metro edge/core equipment. Both areas are further refined into six categories: Ethernet switches and routers, Ethernet over SONET/SDH, RPR over Ethernet, Ethernet over WDM, Ethernet over DSL and cable, and ePON.
Some highlights:
- Ethernet switches and routers make up 66 percent of total revenue in 2002
- Ethernet over SONET/SDH (standard and RPR) makes up 21 percent of revenue in 2002
- Worldwide Metro Ethernet equipment CPE/BPE makes up 44 percent, and edge/core makes up 56 percent of total revenue in 2002
- Asia/Pacific leads regional spending with 43 percent, followed by North America with 37 percent in 2002
The Metro Ethernet Equipment report includes market size, five-year revenue forecasts, technology share, and analysis covering all regions (worldwide, North America, EMEA, Asia/Pacific, and CALA), as well as detailed port analysis with five-year shipment forecasts.
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