Forecast: Ethernet 10G, 100G service revenue to grow 300% by 2018

June 18, 2014
Ethernet services continued to gain momentum in 2013, easily outpacing IP MPLS VPN services, reports Infonetics Research.

Infonetics Research has released its 2014 Ethernet and IP MPLS VPN Services report, which analyzes the market for wholesale and retail Ethernet services and managed and unmanaged Layer 2 and Layer 3 IP MPLS VPN services.

Ethernet services continued to gain momentum in 2013, easily outpacing IP MPLS VPN services," reports Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. "Both segments are growing at a healthy clip and will continue to do so, with Ethernet services growing about twice as fast as IP MPLS VPNs through 2017."

According to the new report, the combined global Ethernet services and IP MPLS VPN services markets totaled $62.6 billion in 2013, up 12% from the year prior. Keeping the momentum going are cloud services accessed via IP VPNs, Ethernet services, and mobile backhaul transport over Ethernet services, notes Infonetics. Revenue from Ethernet services delivered on 10GE and 100GE is forecast by the market research firm to grow 300% between 2013 and 2018.

Significantly, Howard notes, “Software-defined networking (SDN) and network functions virtualization (NFV) technologies will change the way service providers operate their networks and, more important, how they deliver services. The biggest change will come in the types of security services offered over IP MPLS VPNs and Ethernet services—for example, firewalls, SSL VPNs, intrusion detection, parental controls—and the pace at which they’re made available.”

The report adds that, in 2013, Asia-Pacific made up the biggest share of Ethernet services revenue -- and will continue to do so through 2018.

Learn more about the report.

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