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Worldwide metro Ethernet equipment revenue hit $3.8 billion in 2004, and is projected to double to $7.6 billion by 2008, according to a report from Infonetics Research. The research firm also reports that Metro Ethernet ports are growing strongly as well and will increase 433 percent between 2004 and 2008.
Close to $29 billion will be spent worldwide on Ethernet in metro networks between 2004 and 2008, the report says. Every year over the next 10 years, Ethernet will account for a larger portion of metro capex, and double-digit growth in Ethernet equipment revenue is expected at least through 2008.
"The emergence of carrier class products with strong MEF-defined MPLS protection and service capabilities — which we now track in our report as Carrier Ethernet Switches and Routers — is a major step toward making Ethernet an integral part of metro networks," said Michael Howard, Infonetics Research principal analyst.
"Carriers have been waiting for products like these to help make metro Ethernet more dependable, resilient and adaptable. Expect to see explosive growth in carrier Ethernet products in the next few years," Howard said. "Carriers are already deploying them, and they will continue displacing revenue from enterprise/metro Ethernet switches and enterprise/metro routers with Ethernet interfaces for the foreseeable future.
Infonetics lists the following 2004 Market Highlights:
Carrier Ethernet switch and router revenue hit $61 million worldwide in 2004, or 2 percent of the total metro Ethernet equipment market, and is expected to grow to $2.7 billion in 2008, or 35 percent of the market
Nortel is the worldwide revenue market share leader for both Ethernet over SONET/SDH and Ethernet over WDM
Alcatel is second in the Ethernet over SONET/SDH category, followed closely by Cisco
ADVA is second in the Ethernet over WDM category, followed closely by Cisco
Two important standards were passed that are affecting the market positively, RPR 802.17 and IEEE 802.3ah
Asia Pacific accounted for 39 percent of metro Ethernet equipment revenue in 2004, North America for 35 percent, EMEA for 21 percent, and CALA for 5 percent; these ratios will stay similar through 2008, except that the CALA region will gain a few points and APAC will lose a couple
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